Monaco City is the southcentral ward in the Principality of Monaco. Located on a headland that extends into the Mediterranean Sea, it is …Monaco City is the southcentral ward in the Principality of Monaco. Located on a headland that extends into the Mediterranean Sea, it is nicknamed The Rock. The name "Monaco City" is misleading: it is not itself a city, but a historical and statistical district. It holds most of the country's political and judicial institutions: the Prince's Palace, the town hall, the government, the National Council, the Municipal Council, the courts and a prison.