Defense Minister Benny Gantz on Wednesday approved the construction of 1,000 housing units by Palestinians within Area C in the West Bank.
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Such a move has not happened in years and comes in the context of Israeli and international efforts to strengthen the Palestinian Authority.
Israeli media cites sources in Ramallah who expressed satisfaction with the decision, saying, "The move has political significance."
Area C, which makes up about 60% of Judea and Samaria, is under full Israeli control.