Toward the northern end of the Palau Islands is Kayangel, a picture-postcard coral atoll. Its four islands, fringed with sun-bleached beaches, ring a well-protected aqua-blue lagoon. The main island, Ngcheangel, is less than 2 miles long and takes only a few minutes to walk across - and yet there's a chief for each side. The atoll has just one village, home to about 140 people, most of whom live in tin houses. There are a couple of small stores, a little ice-making plant and a few mopeds, but the island has no cars, phones or airport. Although Kayangel is fairly traditional, it welcomes culturally sensitive visitors. Dress is particularly important - women should plan on wearing a T-shirt and shorts over their bathing suit when swimming, and neither men nor women should wear shorts in the village. Woven handbags and baskets from Kayangel are in demand, as they're made from a high-quality pandanus leaf. The average bag is reasonably priced and lasts a couple of years. Kayangel is the only true coral atoll in the group and Melekeok, the future capital, has a deep water port and five 'stone face' monoliths, while on the northern tip of the island a further 37 monoliths stand in two rows on prehistoric terraces. For hikers, local guides will lead the way to Palau's largest waterfall and highest peak, 713 foot high Mt Ngerchelechuus where you can see 70 species of orchids and wildlife.