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The ancestors of the Micronesians settled the Caroline Islands over 4,000 years ago. A decentralized chieftain-based system eventually evolved into a more centralized economic and religious empire centered on Yap. European explorers--first the Portuguese in search of the Spice Islands and then the Spanish--reached the Carolines in the 16th century, with the Spanish establishing sovereignty. The current FSM passed to German control in 1899, and then to the Japanese in 1914 Following World War II, these islands became part of the United Nations Trust Territory of the Pacific Islands, administered by the United States.
On May 10, 1979, four of the Trust Territory districts ratified a new constitution to become the Federated States of Micronesia. The neighboring trust districts of Palau, the Marshall Islands, and the Northern Mariana Islands chose not to participate. The FSM signed a Compact of Free Association with the U.S. in 1986. An Amended Compact entered into force in June 2004