Palau Constitution Day is observed annually on July 9. On this day, most public events occur in the capital of Ngerulmud and the city of Koror, with citizens taking the day off from work to spend time with their loved ones. The national holiday celebrates Palau culture and history, marking its journey to independence from the U.S. through popular referendums. In 1981, Palau opted not to join the rest of Micronesia and adopted its own constitution, which is modeled after the American constitution, outlining its relationship with the U.S. through free association.