The first recorded account of Japanese contact in Palau occurred in 1820, when a coastal sailing ship was blown off course and eight surviving men spent five years in Palau until 1825.
Japanese traders began to establish settlements from the mid-19th century onwards, and by 1890 two Japanese trading stations had been established.
Many of these traders married the daughters of local chieftains and raised local families.
When Japan annexed Palau from Germany in 1914, Japanese settlers and their descendants acted as state liaison officials and interpreters for the Japanese military administration.

A civilian government was established in 1922 with its headquarters at Koror, replacing the military administration.
The civilian government initiated a programme to identify and collectivise unused land between 1923 and 1932 for redevelopment.
Much of these land were used to build new industrial estates and expand towns to accommodate immigrants from Japan and Okinawa.
In Japan, the government actively encouraged the Japanese and Okinawans to resettle in Micronesia, including Palau, and began establishing farming settlements.
The first farming settlement was established at Ngaremlengui in 1926, but the settlers encountered problems with its humid tropical environment and abandoned it by 1930, although later settlements were established more successfully.

As the Great Depression resulted in massive unemployment in the late 1920s and 1930s, more Japanese and Okinawans migrated to Palau.
Immigrants brought along their families and sought employment in various professions.
The Japanese immigrants held administrative posts, while the Okinawans and a few Koreans worked as labourers in the agricultural, fishery and mining industries.
By 1935, the Japanese constituted at least 60% of Palau's population and were concentrated in urban areas such as Angaur and Koror.
Some Japanese settlers took Palauan wives or mistresses, and there was a sizeable minority of mixed Japanese-Palauan children towards the later years of the Japanese administration.

The Japanese navy expanded their military facilities from 1937 onwards.
More labourers from Japan and Korea were employed to construct the facilities to complete the facilities within a short period of time.
The number of indentured labourers rose to more than 10,000 throughout Micronesia, and placed a heavy strain on the islands' scarce resources.
Many Okinawan and Japanese labourers and permanent settlers were repatriated back to their homeland.
Japanese men were conscripted into regular services, and Palauans who held administrative posts in the police force were reallocated jobs in the agricultural sector.
The Japanese civilians played an important role in the islands' propaganda activities.
As food resources were cut off from Japan, many Japanese encountered greater difficulties in dealing with starvation than their Palauan counterparts, who were more knowledgeable with tropical survival skills.
The first recorded account of Japanese contact in Palau occurred in 1820, when a coastal sailing ship was blown off course and eight surviving men spent five years in Palau until 1825. Japanese traders began to establish settlements from the mid-19th century onwards, and by 1890 two Japanese trading stations had been established. Many of these traders married the daughters of local chieftains and raised local families. When Japan annexed Palau from Germany in 1914, Japanese settlers and their descendants acted as state liaison officials and interpreters for the Japanese military administration.
A civilian government was established in 1922 with its headquarters at Koror, replacing the military administration. The civilian government initiated a programme to identify and collectivise unused land between 1923 and 1932 for redevelopment. Much of these land were used to build new industrial estates and expand towns to accommodate immigrants from Japan and Okinawa. In Japan, the government actively encouraged the Japanese and Okinawans to resettle in Micronesia, including Palau, and began establishing farming settlements. The first farming settlement was established at Ngaremlengui in 1926, but the settlers encountered problems with its humid tropical environment and abandoned it by 1930, although later settlements were established more successfully.
As the Great Depression resulted in massive unemployment in the late 1920s and 1930s, more Japanese and Okinawans migrated to Palau. Immigrants brought along their families and sought employment in various professions. The Japanese immigrants held administrative posts, while the Okinawans and a few Koreans worked as labourers in the agricultural, fishery and mining industries. By 1935, the Japanese constituted at least 60% of Palau's population and were concentrated in urban areas such as Angaur and Koror. Some Japanese settlers took Palauan wives or mistresses, and there was a sizeable minority of mixed Japanese-Palauan children towards the later years of the Japanese administration.
The Japanese navy expanded their military facilities from 1937 onwards. More labourers from Japan and Korea were employed to construct the facilities to complete the facilities within a short period of time. The number of indentured labourers rose to more than 10,000 throughout Micronesia, and placed a heavy strain on the islands' scarce resources. Many Okinawan and Japanese labourers and permanent settlers were repatriated back to their homeland. Japanese men were conscripted into regular services, and Palauans who held administrative posts in the police force were reallocated jobs in the agricultural sector. The Japanese civilians played an important role in the islands' propaganda activities. As food resources were cut off from Japan, many Japanese encountered greater difficulties in dealing with starvation than their Palauan counterparts, who were more knowledgeable with tropical survival skills.
Japanese settlement in Palau