Palau is divided into 16 states, which constitute the country's sole level of subnational administration. These states function as the primary units of local governance, with each maintaining its own constitution and elected government headed by a governor. The states hold significant autonomy in managing local affairs, including land use, traditional customs, and community services. They work alongside the national government to deliver public services such as education, health care, and infrastructure maintenance to their respective populations. The state governments also play a crucial role in preserving traditional leadership systems and cultural practices, as many states recognize hereditary chiefs who hold customary authority. This administrative structure reflects Palau's effort to balance modern democratic governance with traditional Palauan social organization across its scattered island communities.