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Koror village is the largest village in Palau, is located on the island of Koror, on the northern side of the state. Its population spills over on to the nearby islands of Ngerkebesang and Malakal, which is connected to Koror by causeways. Koror has been commercial center for over 50 years and the most of Palau's 17000 people live and work there.
Over the years, with the development of better roads including the recently completed compact road encircling Babeldaob Island, commuting to and outlaying villages, has become easier, resulting in a very gradual but contineous population decline in Koror. The construction and subsequent relocation of Palau's new capital state of Melekeok was expected to attract more businesses into Melekeok. However this has not been the case and Koror still remains Palau's commercial Center.
Palau's docking facilities are also found in Koror state on Malakal Island. Malakal Harbor, the harbor facility for Palau, is located on the west side of Malakal Island and offers a sheltered, deep-water anchorage that has been in continual use since the mid 1800's. Most all items to construction materials, comes through this dock.
Koror is the home of the clan of the Ibedul, the paramount chief of Palau. Also in the oral tradition of Palau, Koror is one of the children of Milad and thus occupies an important position in traditional beliefs.