In the 1980s, the U.S. Congress designated the College of Micronesia as the Land Grant College of the Trust Territory of the Pacific Islands. This agreement was later extended by the three Micronesian governments, including Palau. On March 19, 1993, the Palau Higher Education Act of 1993 established the college as an independent college with its own governing board. Prior to this, the college was known as the Micronesian Occupational College. On April 2, 1993, it officially became the Palau Community College.
