Phra Racha Wang Derm or Thon Buri Palace is the only palace built by King Taksin the great in 1768. It was built on the west bank of the Chao Phraya River near the old Wichayen Fort which was later renamed Wichaiprasit Fort to the canal north of Arun Rajawararam temple (Nakornban Canal) and included Wat Chaen (Arun Rajawararam Temple) and Wat Tai Talad (Wat Molee Lokayaram) within its borders. Later, when King Rama I ascended the throne, the capital was moved to the east bank of the Chao Phraya River, and a new royal palace was constructed. Thon Buri Palace became known as Phra Racha Wang Derm (the original palace). King Rama I reduced the area of the palace by excluding the two temples from the palace grounds.
Because of its strategic location, the King placed important royal family members in Phra Racha Wang Derm. This practice continued until King Rama V
Three Kings were born at Phra Racha Wang Derm during the reign of King Rama I, all of them sons of King Rama II who at the time held the title of Prince Khrom Luang Isara Sunthorn
When Prince Chakrapadipongse, the last occupant, passed away, King Rama V graciously bestowed the palace to the Royal Thai Navy to be used as the site of the Naval Academy. Specific instructions were given to preserve ancient sites such as the Throne Hall, King Pinklao's residence, King Taksin's Shrine and the Whale Head Shrine. The Naval Academy remained at Phra Racha Wang Derm until 1944 when it was moved to Sattahip and Kledkaew. Then it was moved to its current location at Samutprakarn in 1952.The Academy building, which was originally built in western style, was remodeled into a Thai style and has housed the Royal Thai Navy Headquarters up to the present