ʿAwālī, municipality in the state and emirate of Bahrain, on central Bahrain island, in the Persian Gulf. Founded in the 1930s by the Bahrain Petroleum Company (BAPCO), it is situated just north of Bahrain’s oil fields and southwest of the country’s oil refinery, one of the largest in the world. The municipality was built to house the main offices, headquarters staff, and foreign executives and employees of BAPCO. ʿAwālī (Arabic: “High Places”) was laid out in the pattern of a Western small town or suburban development, with trees and gardens in the midst of the hostile desert. The expense and difficulty of maintaining such surroundings is emphasized by the fact that all water must be piped from sources several miles away. Furthermore, the settlement is built on a rocky outcrop; a pneumatic drill must be used to penetrate the overlying rock strata before a tree can be planted. The population of ʿAwālī decreased sharply in the 1960s and early 1970s as the company replaced the expatriate Westerners, who resided there, with Bahrainis living elsewhere in the country. Pop. (latest est.) 1,769.