Solution chemistry of Pd(II) and Pt(II) complexes is relevant to many fields of chemistry given the widespread applications of their compounds in homogeneous and heterogeneous catalysis, intermediate reaction synthesis, and antitumoral drugs. The well-defined square-planar arrangement of their complexes contrasts with the rather diffuse axial environment in solution. A theoretical proposal for a characteristic hydration shell in this axial region, called the meso-shell, stimulated further experimental and theoretical studies which have led to different pictures. The present work characterizes the structure of the axial region of the Pd(II) aqua ion in solution using a combination of neutron and X-ray diffraction and extended X-ray absorption fine structure (EXAFS) spectroscopy, with empirical potential structure refinement (EPSR). The results confirm the existence of the axial region and structurally characterize the water molecules within it. An important finding not previously reported is that the counterion, in this case the perchlorate anion, competes with water molecules for the meso-shell occupancy. The important role played by the axial region in many ligand substitution reactions is therefore intimately connected with the presence of the counterion and not just hydration water. This must call the attention of the experimental community to the important role that the counterion of the precursor salt must play in the synthesis.