The Palace, as in most other cities, in the place where the ruler of the Norther Water Tribe resides, along with many of their nobles, such as the ruler's family, the war chiefs, and anyone else with some sort of high status. The Palace also holds the war counsel, where wars and fights are all planned.

Near the Palace are the healing huts where, as the names imply, people to go get healed. They are placed near the palace because of the fact that usually only soldiers are in need of the hut's services. They also train young water benders, mainly female, to learn how to use their healing abilities.