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This State of the Environment (SOE) Report is part of the process of assessing the environmental issues confronting Palau, and will contribute to the development of a National Environmental Management Strategy (NEMS) for the Republic. It was commissioned by the South Pacific Regional Environment Programme for the Government of the Republic of Palau.

The Republic of Palau is an archipelago in the Western Pacific located between 7º North latitude and 134º East longitude. Palau consists of over 500 islands covering a land area of 535 km2 . The archipelago has a tropical maritime climate with a mean temperature of 27º C (81ºF). The annual rainfall is about 3,700 millimeters. The Republic of Palau is situated close to the global center of marine biodiversity. There are at least 10,000 species of living organisms in Palau. The marine life consists of nearly 1,500 species of reef fishes, and 700 corals. Approximately 1,000 endemic organisms are found in Palau, the bulk of them from the terrestrial environment. Terrestrial endemics include about 200 endemic plants, of which 60 are orchids, 300 terrestrial gastropods, 500 insects, 16 birds, 12 amphibians and reptiles, two freshwater fishes, and two species of bat. All of these organisms are directly affected by droughts, soil erosion, land degradation, and unsustainable development.