Governors from Guam, Yap and Saipan are meeting the Palau President for a summit aimed at forming regional partnerships to confront perennial island problems.
The Palau president, Tommy Remengesau, says the summit is realistic and he says it makes economic sense to pool their resources.
High on the agenda is improving the health care with a new, possibly US-funded regional hospital on Guam, lowering high fuel costs by buying in bulk, and developing a regional programme that would make recycling economically feasible.
The summit is a follow-up on a March 2003 meeting called the Western Micronesia Chief Executives Summit.
Other issues to be discussed include a regional tourism marketing plan, a regional airline, a regional shipping line and ways to improve both education and telecommunications.