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Koror

The economic center and capital of Palau, Koror is home to two-thirds of the republic's population. It's a much less vibrant town than it was when the Japanese called it theirs, with a Micronesian pace and no particular penchant for hustle and bustle. If you dig deep enough, you'll still find remnants of a more traditional past, but at best it's good for a day or two of exploration. Beyond that, use Koror as a jumping-off point for trips to the Rock Islands, Peleliu, Angaur and the other islands.

On Koror Island, the Belau National Museum is a good place to firm up your understanding of the nation's culture and history. It's packed with exhibits ranging from the mounted head of a 15ft (5m) crocodile - the largest ever found on the island - to Palauan bead and shell money, intricately carved storyboards and other local artifacts and crafts. One the grounds is a beautiful wood-and-thatch bai (communal meeting center) and a few remnants of Japan's war machine.

Malakal Island, across from Koror, is home to the Micronesia Mariculture Demonstration Center, a research marine lab engaged in conservation and commercial projects. Their big claim to fame is their success in cultivating giant tridacna clams. The tropical aquariums of the visitor center are worth a peek. There's an excellent view of the Rock Islands from nearby Malakal Hill.

Rock Islands

The Rock Islands are Palau's crowning glory. More than 200 of these jungle-topped knobs of limestone dot the waters for a 20 mile (35km) stretch south of Koror. Their bases, having been worn away by tidal action and grazing sea creatures, are narrower than their tops, causing them to look like emerald-hued mushrooms rising from the turquoise sea. From the air, they're a knock out, and flights from Koror to Angaur or Peleliu are worth taking just for the view alone. But it's the waters surrounding them that make the Rock Islands unique. Dive in and you'll find some of the most abundant and diverse marine life to be found anywhere.

The Ngemelis Wall is widely considered to be the world's finest wall dive. Starting in knee-deep water, it vertically drops off nearly 1000 ft (300m), showcasing a brilliant rainbow of sponges and soft coral whose intense colors form the backdrop for quivering 9ft (3m) sea fans and giant black coral trees. Blue Corner is the country's most popular dive, where you can expect to be dazzled by an incredible variety of fins and flippers, from schooling sharks and barracudas to soft and hard coral.

Inland, Jellyfish Lake is a marine lake, popularized in the National Geographic TV special Medusa, wherein millions of tiny stingerless jellyfish float and bob in unison.
Some of the Rock Islands have soft, white-sand beaches to laze about on after a dive, while others boast caves with dripping stalactites, rock arches and underground channels; ancient rock paintings (on Ulong Island); and half-carved Yapese stone money (in a cave near Airai Channel). Oh yes, and crocodiles. 
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