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The Republic of Palau is a constitutional democracy in free association with the United States. Palau is an archipelago consisting of several hundred volcanic and limestone islands and coral atolls, few of which are inhabited, and is politically divided into 16 states. Palau’s developing economy depends on tourism, marine resources and a small agricultural sector. There are two kinds of public transportation available, taxi and Airai bus service. Palau International Airport is located on Babeldaob Island, near Koror Island. Direct commercial air service exists from Manila, Taipei and Guam to Palau. Read the Department of State Background Note on Palau for additional information.