Palau (pälou') [key], officially Republic of Palau, independent nation (2005 est. pop. 20,300), c.192 sq mi (497 sq km), W Pacific, in the W Caroline Islands. Belau, the native form of Palau, is sometimes used. Until 1994, Palau was administered by the United States as the last UN trust territory. It consists of about 200 islands and islets, of which Babeldaob (or Babelthuap, the site of the capital), Oreor (or Koror, the former site of the capital), Arakabesan, and Malakal are the most important. Administratively, the islands are divided into 16 states. Palau has a bicameral parliament, a president, and a vice president. Subsistence farming and some commercial fishing and shellfishing are the chief economic activities.
