Ngerulmud is the capital of the island nation of Palau and holds the distinction of being the least populous capital city of a sovereign state in the world. Located on the island of Babeldaob, it was purpose-built to replace the former capital, Koror, in an effort to decentralize the population and government activity. The capital was officially moved in 2006. Despite its grand neoclassical government buildings—modeled somewhat after the U.S. Capitol—the 'city' has a permanent population of fewer than 300 people. Most of the country's economic activity and the majority of its population remain in Koror, which is about 20 miles away. Ngerulmud is often described as feeling like a ghost town because the massive, imposing legislative and judicial complexes are surrounded by lush tropical jungle and very little residential or commercial development. It represents a unique example of a nation creating a brand-new administrative center that struggles to draw the population away from established urban hubs.