Panau is not really a City but a fictional nation featured in Just Cause 2.The Panauan islands were controlled by the Spanish during the Age of Exploration. Although the Dutch, Portugese, and British were mentioned by Odd Ahlgren in the Panau Mini-Doc, they only controlled smaller Islands around Panau, some of which are part of modern Panau. The location is implied to be somewhere in the region of the Malay Peninsula. Many urban centers in the game take certain cues from the visual style of Singapore. Panays globe in JC2 MP
The globe that hangs from the U1 ceiling, as seen in Just Cause 2 Multiplayer. It has the routes of the Nuclear missiles from the last mission. They all start at one point on the globe - Panau.
Stretching out 1035.55 km2 (400 square miles), the island is packed with dense jungle, arctic peaks, arid deserts and sun-bleached beaches, each populated with a variety of settlements in which to cause chaos. From ski resorts to submarine bases, towns and villages to a huge capital city; Panau is an island rich in variety. Each climate zone has its own unique weather system with dense snow falls creating picture postcard peaks and tropical thunder storms lighting up the night sky.
Just Cause 2 has a dynamic day and night cycle, which covers 24 in-game hours in 1 real life hour and dramatically affects the appearance of the landscape, resulting in some very picturesque sunsets.
Panau most likely uses Panauan dollars as exchange, evidenced by a radio transmission after the mission Three Kings. During the first stage of the mission, "The White Tiger", where Rico must meet Ken Pang. He says this to the informant: "Considering the value of the Panauan Buck, shooting you would have been more expensive." If what Rico paid Pang were US dollars, that would mean a single US dollar could be over 50 Panauan bucks. The prices on the Gas Station signs are probably also in this exchange.
The design of Panau is likely to have been inspired by Thailand. The name is most likely based on the nation of Palau, which is located in the same area.The flag looks really reminiscent of the flag of Cuba. The nation spans deserts, snowy mountains and citiesDuring World War II, Imperialist Japan took over the island. They set up a secret weapons facility at Hantu Island, which is still operational today. During the Japanese occupation, many Japanese citizens immigrated to Panau, bringing even more Buddhism.
After the war, the island was unstable and the world's superpowers were trying to influence it. The Cold War had swarmed over Panau. The U.S. and the U.K. were trying to start anti-communist movements, creating many democrats, while on the other hand the Soviet Union and P.R. China started supporting communist actions, which helped the Reapers grow. In the end, the British/American cause was victorious. A capitalist democracy was set up on Panau, but it ended soon. USA and the United Kingdom got the blame for this by supporting anti-communists in the Cold War and putting all their trust into them, thus resulting in many democrats and accidental fascists.
Poliomyelitis was a problem that hindered internal economy until Colonel Che Soon controversially started championing the distribution of vaccine for poor people, which as he foresaw, payed off. Panau City is the capitol.