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Separatist groups urge Kanak indigenous people to support independence
Voters from the French Pacific Territory of New Caledonia take part in a referendum on the maintenance of independence or participation in political life.
The vote had been promised under an agreement reached two decades ago as a result of a violent campaign by separatists of the Kanak indigenous people.
Separatist groups have urged Kanak voters to get rid of the "chains of colonial authorities" in Paris.
However, polls suggest that a majority of voters will reject independence.
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About 175,000 people have the right to vote in the territory, east of Australia, but Kanaks account for less than 50% of the electorate.
French nationalism is strong among the Europeans of the territory and observers say that even some Kanaks remain back from France.
The French government receives annually about 1.3 billion euros (1.1 billion pounds sterling).
New Caledonia has significant deposits of nickel, an essential component of manufacturing electronics, and is considered by France to be a strategic political and economic asset in the region.
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French President Emmanuel Macron visited the islands in May
French President Emmanuel Macron is expected to give a televised address following the results expected at 23:00 local time (12:00 GMT).
During a visit to Noumea, the capital, in May, he said that France would be "less beautiful without New Caledonia".
Voters who will go to the polls on Sunday will be asked the question: "Do you want New Caledonia to acquire full sovereignty and become independent?"
Under the terms of the 1998 agreement, in case of "no", two more independence referendums can still be held before 2022.
If there is a "yes", it will be the first French territory to separate from Djibouti (1977) and Vanuatu (1980).
New Caledonia is represented in the French Parliament by two deputies and two senators.
Its convention elects an executive with powers in certain areas, including the maintenance of order, education and local laws.
France first claimed the islands in 1853 and used them once as a prison colony.
In the 1980s, clashes took place between the French forces and the indigenous Kanaks.
The conflict reached its climax when the Kanak separatists hijacked a group of French gendarmes in a cave. The French assault killed 19 Kanaks and two soldiers.
