Kalawao County is a county in the U.S. state of Hawaii. It is the smallest county in the 50 states by land area and the second-smallest county by population, after Loving County, Texas. The county encompasses the peninsula on the north coast of the island of Molokaʻi. The peninsula was developed and used from 1866 to 1969 for settlements for treatment …Kalawao County is a county in the U.S. state of Hawaii. It is the smallest county in the 50 states by land area and the second-smallest county by population, after Loving County, Texas. The county encompasses the peninsula on the north coast of the island of Molokaʻi. The peninsula was developed and used from 1866 to 1969 for settlements for treatment of quarantined persons with Hansen's disease, chosen because it is isolated from the rest of Molokaʻi by cliffs over a quarter-mile high; the only land access is a mule trail.