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Diu, formerly Dio, town, Dadra and Nagar Haveli and Daman and Diu union territory, western India. It is situated on an island in the Gulf of Khambhat (Cambay) of the Arabian Sea, off the southern tip of the Kathiawar Peninsula in southwestern Gujarat state, separated from the mainland by a tidal creek. Diu is originally a part of union territory of Daman and Diu.