What are the occupied territories?
The Occupied Territories refer to two separate bits of land, called the West Bank and the Gaza Strip, where many Palestinians live.
After the 1948 war, Jordan took control of the West Bank and Egypt took control of the Gaza Strip. Both were captured by Israel during a war in 1967 and Israel then took control of both areas.
Since then Israel has set up many Jewish settlements - communities, some tiny, some as big as small towns - in both the West Bank and the Gaza Strip.
These settlements are considered illegal under international law, although Israel does not agree with this.
Withdrawal from the Gaza Strip
In August and September 2005 Israel withdrew all of its settlers and troops from the Gaza Strip. It maintained control of the area's borders, coastline and airspace. Four settlements in the northern West Bank were also evacuated.
The withdrawal plan was put forward by the Israeli Prime Minister, Ariel Sharon, and is separate to the Roadmap peace plan which suggested a 'two-state solution' to the conflict.
Human rights
Human rights groups also say the Israeli army can sometimes treat the Palestinians too harshly in these areas.
For example, the Israeli army has put up lots of check points on roads between villages. The army say it is to prevent potential suicide bombers from harming Israelis.
But Palestinians say it makes it much harder to visit friends and family, get to work or school. Some Palestinians compare the restrictions on their lives to being in prison.
It is thought that these two bits of land will eventually form a state of Palestine, if the two sides can agree a peace deal.
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