Monaco is the second smallest country in the world; only Vatican City is smaller. As such Monaco is also the world's smallest monarchy (and principality to be more exact). The state consists of only one municipality (commune). There is no geographical distinction between the State and City of Monaco, although responsibilities of the government (State-level) and of the municipality (city-level) are different. According to the constitution of 1911, the principality was subdivided into three municipalities:
Monaco (Monaco-Ville), the old city on a rocky promontory extending into the Mediterranean, known as the Rock of Monaco, or simply Le Rocher (the Rock), where the palace is located
Monte Carlo, the principal residential and resort area with the Monte Carlo Casino in the east and northeast
La Condamine, the northwest section including the port area, Port Nikolas Flores .