Palikir (/ˈpælɪkɪər/) is the capital city of the Federated States of Micronesia located in the western Pacific Ocean.

[6] Subsequent to World War II, the island was administered by the United States Government until FSM attained independence in 1979.

[7] The government of the Federated States of Micronesia decided to convert the Palikir area into a town to house the central administration of the islands as a purpose built capital city.

[9] All government offices, some residential houses, and the residence of the President of the Federated States of Micronesia were built.

[3] 9 kilometers (6 miles) to the southeast, Mount Nanlaud is the highest point of the Federated States of Micronesia and of Pohnpei at 2,566 feet (782 m)[12] as indicated on the definitive USGS 1:25,000 scale topographic survey.

The town experiences heavy rainfall year-round; on average 5,202 millimeters (204.8 in) of rain falls annually, making it the wettest capital in the world.

[7][11] The country is independent, but in fact depends on financial support stemming from its Compact of Free Association with the US.

As of 2012[update] the inflation rate was 2% and the cost of living (for imported goods) in Palikir is reportedly very high in comparison with other places in the world.