The Palù viIlage gets its current ladin name from the marshy land that used to cover the surrounding area; it lies on the valley side just east of the parish church. 

lt is home to only one or two of the traditional Sappada residential buildings and to a number of rustic houses in the second and third generation of local architectural style.

In the old days, people attributed the small size of the village to a massive landslide that, in an unspecified epoch, supposedly fell from Mt. Morpa destroying most of its buildings.

Before the construction of the new, straight street in 1922, and its extension all the way to the Muhlbach valley, the road leading to the village had a sharp turn and a steep incline. lt went from 1,216 meters at the bottom of the curve to 1,240 near Pill. Given this change in altitude and the related need for a rest-stop for travelers, the old car­riage stop was replaced by the Posta hotel at the end of the 19th cen­tury.