Crystal clear seas lap against a leafy oasis on the  Pacific island of Palau. But if its mere 390 residents and vacant grand buildings leave you thinking this is a failed building project or bustling centre, you would think wrong.

Ngerulmud, is in fact the capital city of the Pacific island nation of Palau. It is one of the least populated capitals in the world. Originally, Koror served as Palau’s capital and remains its commercial hub.

However, plans to shift government offices to Ngerulmud began in 1986, and by 2006, the capital was officially relocated following the opening of Ngerulmund’s grand domed buildings. Despite its status, Ngerulmud remains largely uninhabited, earning it a reputation as a unique capital due to its low population and minimal activity.

The decision to move the capital from Koror was decided by the country’s constitution, in 1979, which instructed the Palau National Congress to establish a permanent capital in Babeldaob within ten years. But today, this decision is largely a useless piece of paperwork.

Planning for the new capital started in 1986 when a Hawaii-based architecture firm that had previously designed the Federated States of Micronesia’s capitol complex, was contracted. Progress was slow due to a lack of engineers and architects in Palau, and the need to import most construction materials.

It wasn’t until the early 2000s that further work began when Palau secured a $20 million loan from Taiwan in an effort to strengthen relations between the two nations and ensure Palau’s diplomatic recognition of Taiwan.

The complex, which cost over $45 million, houses separate buildings for the Olbiil era Kelulau (the country’s legislature), as well as the judicial and executive branches, all connected by a central open plaza.

It was officially opened on 7 October 2006, with over 5,000 people in attendance. Shortly after, government officials relocated their offices from Koror to Ngerulmud.

However, in 2013 The Wall Street Journal reported that the capitol building, ill-suited to the local climate, had plunged Palau into debt, and a fault in the ventilation system had recently led to a mould infestation. In April 2013, as part of cost-cutting measures implemented by the postmaster, Tommy Sinsak, Ngerulmud’s post office was permanently closed.

Established in December 2011 following an Olbiil era Kelulau resolution, it was one of only two in the country (the other being in Koror). During its 16 months of operation, expenses exceeded $30,000, while revenues, primarily from stamps, were less than $2,000.

Ngerulmud is the only settlement in Palau to have its own post code -with the rest of the country using just one number to help the United States Postal Service services locate them.

In July 2014, Ngerulmud was the venue for the official opening of the 45th Pacific Islands Forum. Despite this, most of the forum’s events took place in Koror, with the leader’s retreat being held in Peleliu State.

Fast forward to February 2016, Ngerulmud played host to the 16th Micronesian Presidents’ Summit, which saw the presidents of Palau, the Marshall Islands, and the Federated States of Micronesia in attendance.