The bustling loose forward was finally ruled out of the historic opening round encounter - against the newcomers, the Rebels - in Melbourne on Friday.
Palu has been excluded from selection and is expected to remain on the sideline for three weeks, following further assessment of the hamstring strain he suffered in the Waratahs' 38-22 trial victory over the Force last Thursday in Nowra.
Ben Mowen will assume the No 8 role, while Dave Dennis will start the match on the side of the scrum.
The Waratahs' other two players on the return from injury will both take their place in the match day squad on Friday.
On the comeback from a six-month elbow injury which ended his 2010 season, Rob Horne came through 40 minutes in last Thursday's curtain raiser against the Australian Barbarians and will take his place in the starting side.
Benn Robinson (calf) will line up on the bench after proving his fitness, but failing to appear in either of the Tahs' two trial matches.
Tom Carter will make his 43rd consecutive Super Rugby appearance and bring up his 50th Waratahs cap in the match, while Al Baxter will reach 116 caps to move ahead of Matt Burke into third on the all time list behind Phil Waugh and Chris Whittaker.
Teams:
Waratahs:
15 Kurtley Beale, 14 Lachie Turner, 13 Rob Horne, 12 Tom Carter, 11 Drew Mitchell, 10 Berrick Barnes, 9 Luke Burgess, 8 Ben Mowen, 7 Phil Waugh (captain), 6 Dave Dennis, 5 Kane Douglas, 4 Dean Mumm, 3 Al Baxter, 2 Tatafu Polota-Nau, 1 Sekope Kepu
Substitutes: 16 Damien Fitzpatrick, 17 Benn Robinson, 18 Sitaleki Timani, 19 Chris Alcock, 20 Brendan McKibbin, 21 Daniel Halangahu, 22 Ryan Cross
Rebels:
15 Julian Huxley, 14 Lachlan Mitchell, 13 Stirling Mortlock (captain), 12 Cooper Vuna, 11 Luke Rooney, 10 James Hilgendorf, 9 Sam Cordingley, 8 Gareth Delve, 7 Michael Lipman, 6 Hoani Macdonald, 5 Kevin O'Neill, 4 Adam Byrnes, 3 Greg Somerville, 2 Ged Robinson, 1 Nic Henderson
Substitutes: 16 Heath Tessmann, 17 Laurie Weeks, 18 Alister Campbell, 19 Jarrod Saffy, 20 Nick Phipps, 21 Danny Cipriani, 22 Afusipa Taumoepeau