The planning system on the West Bank, implemented by the Civil Administration, is one of the most powerful mechanisms of the Israeli occupation. As with the other bureaucratic systems, the planning system operates on two distinct tracks: one for Jews and the other for Palestinians.

This system is responsible for transforming the map of the West Bank because it is the planning system that approves the outline plans for the settlements and issues building permits for the establishment and expansion of settlements and for the construction of by-pass roads. Israel changed the composition of the planning institutions on the West Bank and transferred numerous planning powers to the Jewish local authorities, while expropriating these powers from Palestinian planning institutions.

While facilitating Jewish settlement, the planning system works vigorously to restrict the development of Palestinian communities. The main tool used to this end is to reject requests for building permits filed by Palestinians. In most cases, the requests are rejected on the grounds that the regional outline plans - approved in the 1940s during the British Mandate - prohibit construction in the relevant area of land. These plans do not reflect the development needs of the Palestinian population, and the planning system deliberately refrains from preparing revised plans. Houses built by Palestinians without building permits are demolished by the Civil Administration, even in cases when the construction took place on private land.

After the signing of the interim accord in 1995, planning powers in areas A and B - which account for approximately forty percent of the area of the West Bank since 2000 - were transferred to the Palestinian Authority. While the vast majority of the Palestinian population lives in these areas, the vacant land available for construction in dozens of villages and towns across the West Bank is situated on the margins of the communities and defined as area C. The Israeli planning authorities continue to control planning and construction in these areas.