Municipal Palace. Panama, Panama City, historic town listed as World Heritage by UNESCO, Casco Antiguo, Barrio San Felipe, Palacio Municipal. Located on the second floor of the Municipal Palace building, the Museum of History presents documents, artifacts, paintings, sculptures and pieces from throughout Panama's history. You are certain to leave with a better understanding of Panama and it's history. The city council now meets on the second floor of this neoclasisical white building, but it was originally built, in 1910, as the seat of the country's legislature (which grew too large for it and moved to its current home on Plaza Cinco de Mayo). It replaced a colonial palace that had stood at the same spot for nearly three centuries. On the ground floor is the tiny Museo de la Historia de Panamá, which traces the country's history from the explorations of Christopher Columbus to the present day. The history museum is a disappointment, but it's worth stepping inside to have a look at the building's interior.