With the exception of Anguar Island, this is the most southerly part of Palau. It was the scene of extremely heavy fighting between US and Japanese troops during WW2. More than 12,000 servicemen, on both sides, lost their lives over the two month battle.
The most well-known site is Peleliu Cut. At its shallowest, this reef lies in 10m of water, with walls that drop off steeply to the depths. Because of the ever-present currents, there is actually very little coral life at the top, however the walls are covered in sea fans, sea whips and hard and soft corals.
Fish life is profuse here and it is a great site to see grey reef sharks. Other pelagic visitors are eagle and manta rays, snapper, jacks and batfish.
There are other sites around Peleliu, one worthy of mention being Yellow Wall which is just to the east of Peleliu Cut. The site gets its name from all the yellow soft corals that grow here and in addition you'll see a good variety of hard corals on the wall that drops to a sandy shelf at 45m. Sharks can often be seen at this lower depth. Reef fish, including butterflyfish and angelfish are ever-present.
In close proximity are some other less well visited sites including Peleiu Camp, Peleiu Drop-Off and Peleiu Wall.