Ngerulmud is the capital city of Palau, a small island country in the Pacific Ocean. It became the capital in 2006, replacing the previous capital, Melekeok. Ngerulmud is located in the state of Melekeok on Babeldaob, the largest island in Palau. The name Ngerulmud comes from a Palauan phrase meaning "place of fermented angelfish". The city was built with a loan from Taiwan and has buildings for the government, including the legislative, judicial, and executive branches. Ngerulmud is not a very big city, with a population of just 318 people in the state where it is located.