Rounding out the top 10 this year were Taichung City, Penghu County, Taoyuan County, Kaohsiung City, Miaoli County, Hualien County and Chiayi City, in that order.

Taipei County recorded the largest improvement, leaping eight notches from 21st place last year to 13th this year. The second-largest improvement was recorded by Kaohsiung City - the host of the World Games 2009 - whose ranking was up by six notches.

On the other hand, Keelung City and Yunlin County were at the bottom of the list for the third consecutive year.

Among those seeing the greatest regression were Chiayi City, whose ranking plunged from fourth last year to 10th this year, and Taichung County, whose ranking dropped from 12th three years ago to 20th this year.

This year's survey evaluated a total of 54 indicators grouped into five categories: economy, environment, governance, education and social welfare. Besides official statistics, the measurement also included opinion surveys conducted among a total of 10,225 residents in the 23 counties and cities around Taiwan between July 18 and Aug. 14.

In terms of economic standing, Hsinchu City was rated the city with the strongest economic power, with average annual household savings amounting to NT$343,000 (US$10,750) and 38 percent of residents thinking employment will be easy to find in the city over the next three years.

Following closely after Hsinchu City were Taipei City, Taichung City, Tainan City and Kaohsiung City, while Yilan, Miaoli and Penghu counties posted the greatest growth in economic power this year.

Hsinchu City was also the top performer in terms of governance, with approximately 70 percent of residents describing the city government as highly efficient. It was followed by Taoyuan County, Penghu County, Taichung City and Taipei City, in that order.

In terms of education, Hsinchu Mayor Lin Junq-tzer was named the local government chief who paid the greatest attention to education, whereas Taipei Mayor Hau Lung-bin (郝龍斌) was rated fourth from the bottom in this category among Taiwan's 23 local government chiefs.