[1] South Tarawa is home to most of the government, commercial and education facilities in Kiribati including the Port and the High Court at Betio, the State House, Government Ministries and foreign embassies and High Commissions in Bairiki, the University of the South Pacific campus in Teaoraereke, the House of Assembly in Ambo, the Kiribati Teacher College and King George V and Elaine Bernacchi School, the Government High School, is in Bikenibeu,[3] and the Tungaru central hospital in Nawerewere.

The highest point on South Tarawa is only a very few meters above sea level (Eita, 3 metres), making the island extremely vulnerable to natural disasters.

However, rainfall is very unpredictable, varying with the El Niño–Southern Oscillation, and South Tarawa can go for many months with almost no rain during La Niña cycles.

During the frequent droughts, the only source of water is the shallow freshwater lens that permeates the coral rock of the atoll.

Other previously declared water reserves have been relinquished for urbanisation or abandoned due to overpumping and pollution from human settlement.

Coastal erosion will accelerate in future, due to climate change related sea level rise.

South Tarawa and especially Betio have high rates of respiratory infections, diarrhoea, and dysentery,[4] all of which have been linked to overcrowding.

[17] Anote Tong's administration aims to ease the problem in the country's main urban centre by encouraging people to stay and to resettle in outer islands.

[18] South Tarawa is the economic hub of Kiribati, the location of the main port and airport and of most of the state-owned enterprises and private businesses.

Imports far outweigh exports, and most households on South Tarawa rely on government employment and remittances from relatives working overseas.

There are also several private Christian high schools:[19] Fiji Airways flies to Bonriki International Airport on South Tarawa from Nadi, on Mondays and Thursdays.