The Oslo II Accord divided the Israeli-occupied West Bank into three administrative divisions: the Palestinian enclaves as "Areas A and B" and the remainder, including Israeli settlements, as "Area C".

The Palestinian enclaves were created by a process of subtraction by allocating to Area C everything that the Israeli government considered "important", thereby consigning the vast majority of Palestinians in the West Bank to the remaining non-contiguous areas.What is Area C?. B'Tselem, 9 October 2013

Area C forms a contiguous territory on 61% of the West Bank, and is administered solely by Israel via the Judea and Samaria Area administration. As of 2015, it is home to 150,000 Palestinians in 532 residential areas, and roughly 400,000 Israelis in 135 settlements and more than 100 unrecognized outposts.

In contrast, Areas A and B are subdivided into 165 enclaves of land that have no territorial contiguity. Area A is exclusively administered by the Palestinian National Authority; Area B is administered by both the Palestinian Authority and Israel. Area A comprises approximately 18% of the total territory of the West Bank and Area B about 22% of the territory, together home to some 2.8 million Palestinians.

Divisions The Oslo II Accord stipulated that "during the first phase of redeployment" the jurisdiction over Areas A and B would be transferred to the Palestinian Council. Article XI.2.a reads: "Land in populated areas (Areas A and B), including government and Al Waqf land, will come under the jurisdiction of the Council during the first phase of redeployment."

The populated areas were defined by delineations on a map attached to the document. Area C comprised the areas of the West Bank outside Areas A and B.

Palestinian enclaves (Areas A and B)

Area A (full civil and security control by the Palestinian Authority): initially, circa 3% of the West Bank, exclusive East Jerusalem (first phase, 1995). (this study was funded by the Settlement Division of the Zionist Organization) As of 2013, Area A formally comprised about 18% of the West Bank. During the second intifada, the Israel Defense Forces abolished the prohibition against entering Area A during Operation Defensive Shield in 2002 and entered the area regularly, mostly at night, conducting raids to arrest suspected militants.Nahum Barnea, 'Beitunian nights: The IDF in the West Bank,' Ynet 18 March 2016. Typically, such raids are coordinated with the Palestinian security forces. This area includes eight Palestinian cities and their surrounding areas (Nablus, Jenin, Tulkarem, Qalqilya, Ramallah, Bethlehem, Jericho and 80 percent of Hebron), with no Israeli settlements.The demise of the Oslo process. Joel Beinin, MERIP, 26 March 1999. In area B, consisting of about 23 percent of the territory (including some 440 villages and their surrounding lands), the Palestinians are responsible for certain municipal functions, while joint Israeli-Palestinian patrols maintain internal security. Area C, consisting of about 74 percent of the territory including all of the 145 settlements and the new Jewish neighborhoods in and around East Jerusalem, remains under full Israeli control. Entry into this area is forbidden to all Israeli citizens.

Area B (Palestinian civil control and joint Israeli-Palestinian security control): initially, circa 23–25% (first phase, 1995). As of 2013, Area B formally comprised about 22% of the West Bank. This area includes some 440 Palestinian villages and their surrounding lands, and no Israeli settlements. It was defined in the accord as "the populated areas delineated by a red line and shaded in yellow on attached map No. 1, and the built-up area of the hamlets listed in Appendix 6 to Annex I"; this list of hamlets is as follows:

A. Tulkarm DistrictB. Nablus DistrictC. Salfit DistrictD. Jericho DistrictE. Qalqilya DistrictF. Jenin DistrictG. Hebron DistrictH. Ramallah DistrictI. Bethlehem District1. Akkaba

2. Al Nazla Al Wusta

3. Koor

4. Kife1. Jalood

2. Al-Juneid

3. Al-Aqrabinya

4. Nisf Jbeil

5. Yanoon

6. Iraq Bureen

7. A'mouriaKhirbat QaysAl-Zubeidet1. Seer

2. Khirbat Salman

3. Falamiya

4. Khirbat Ras Tera

5. Asalah

6. Al-Funduq

7. Al-Modawar1. Toura Al-Gharbiyyah

2. Al-Zawiyyah

3. Mashrou' Beit Qad

4. Al Kafir

5. Al Mutla

6. Talfit

7. Toura-Al Sharqiyyah1. Al Aziz

2. Khirbat Al-salam 3. Abu Al-A'sja 4. Sikka 5. Wadi Al-Shajna 6. Beit Marseem 7. Al-Hijra 8. Deir Razeh 9. Khilat Al-Mayat 10. Khilat Al A'qd 11. Um Lasafa 12. Qinan Jaber 13. Raboud 14. Shweik 15. Khirbat Skeik 16. Jroun Al-Louz 17. Beit Makdoum 18. Al-Mouriq 19. Al Beira 20. Al Juba 21. Beit I'mra 22. Turama 23. Hadb Al-Alaka 24. Deir Al-A'sal Al Tahta 25. Beit Al Roush Al-Tahata 26. Al-Deir 27. Kuezeiba 28. Hitta 29. Korza1. Jibaa

2. Ein Qinya

3. Yabroud

4. Deir Nitham

5. Um Saffa

6. Burham

7. Al-Nabi Saleh

8. Shibteen

9. Khirbat Um Al-Lahm

10. Beit Ijza1. Wadi Al-Neis

2. Mirah Rabah 3. Al Mas'ara 4. Um Salamouna 5. Al-Khas 6. Khilat Al-louz 7. Abu-Nijem 8. Beit Faloh 9. Breide'a 10. Khirbat Al-Deir 11. Daher Al-Nada 12. Al-Minshya 13. Khilat al-Hadad 14. Keisan 15. Al-Rashaida 16. Harmala 17. Mrah Mia'alla

Remainder of the West Bank (Area C), including Israeli settlements

Area C (full Israeli civil and security control): initially, circa 72–74% (first phase, 1995).MFA, "Map No. 1 – First Phase of Redeployment" Under the 1998 Wye River Memorandum, Israel would further withdraw from some additional 13% from Area C to Area B, which officially reduced Area C to circa 61% of the West Bank.New York Times, 23 July 2012, "Israel Seeks Army Use of West Bank Area""West Bank: Area C Map". UNISPAL, 22 February 2011; from OCHAoPt Israel, however, withdrew from only 2%, and during Operation Defensive Shield, it reoccupied all territory. As of 2013, Area C formally comprised about 63% of the West Bank, including settlements, outposts and declared "state land". Including or excluding annexed East Jerusalem, no-man's land and the Palestinian part of the Dead Sea also determines the percentage. John Kerry, U.S. Secretary of State under the Obama administration, stated that Area C "is effectively restricted for any Palestinian development, and that few building permits had been granted to Palestinian residents of the area.

All Israeli settlements (except those in East Jerusalem, which was annexed to Israel) are located in Area C. Oslo II, Article XII, for example, states: "For the purpose of this Agreement, 'the Settlements' means, in the West Bank the settlements in Area C; and in the Gaza Strip [which were later evacuated during the disengagement] ..."

In 1972, there were 1,000 Israeli settlers living in what is now Area C. By 1993, their population had increased to 110,000. Over 400,000 Jewish settlers live in Area C in Israeli settlements and outposts. Approximately 300,000 Palestinians live there as well; who reside in more than 500 households areas located partially or fully in Area C.

Oslo definition of Area C Oslo II defines Area C as follows:

"Area C" means areas of the West Bank outside Areas A and B, which, except for the issues that will be negotiated in the permanent status negotiations, will be gradually transferred to Palestinian jurisdiction in accordance with this Agreement.

The issues that will be negotiated, according to Article XVII, are "Jerusalem, settlements, specified military locations, Palestinian refugees, borders, foreign relations and Israelis; and … powers and responsibilities not transferred to the Council".Israeli-Palestinian Interim Agreement on the West Bank and the Gaza Strip, Article I "Transfer of Authority"; Article XI "Land", par. 3. 28 September 1995 (Oslo II Accord) Parts of Area C are military area closed for Palestinians.

Transfer of Area C Part of Area C was intended to be handed to Palestinians by the end of 1999.Ron Pundak, "Decoding Bibi's West Bank agenda", Haaretz, 3 August 2012. Israel promised to redeploy its troops from Areas A and B before the elections. After the inauguration of an elected Palestinian parliament, the Israeli Civil Administration would be dissolved and the Israeli military government be withdrawn. The Council would get some powers and responsibilities.

Within 18 months from the date of inauguration, Israel would further redeploy military forces from Area C in three phases, however, without transfer of any sovereignty to the Palestinians:

The Council will assume powers and responsibilities for civil affairs, as well as for public order and internal security, according to this Agreement.Annex I: Protocol Concerning Redeployment and Security Arrangements, Article I—"Redeployment of Israeli Military Forces and Transfer of Responsibility", par. 6, 9–10. Annex to the Interim Agreement on the West Bank and the Gaza Strip (Oslo II)

1. Israel shall transfer powers and responsibilities as specified in this Agreement from the Israeli military government and its Civil Administration to the Council in accordance with this Agreement. Israel shall continue to exercise powers and responsibilities not so transferred. 5. After the inauguration of the Council, the Civil Administration in the West Bank will be dissolved, and the Israeli military government shall be withdrawn. The withdrawal of the military government shall not prevent it from exercising the powers and responsibilities not transferred to the Council.

The military forces would be redeployed in "specified military locations" in the West Bank, to be negotiated in the permanent status negotiations within 18 months. The Legislative Council was elected in January 1996.

Use of Area C

Area C, 99% of which is excluded from Palestinian use, contains most of the West Bank's natural resources and open spaces, access to which, according to the World Bank, would enable the Palestinians to halve their budget deficit and lead to an expansion of their economy by a third.Associated Press, "Palestinians lose billions to Israeli land bans, says World Bank report," The National, October 8, 2013: "Without the ability to conduct purposeful economic activity in Area C, the economic space of the West Bank will remain crowded and stunted, inhabited by people whose daily interactions with the state of Israel are characterised by inconvenience, expense and frustration." According to Danny Rubinstein: "Much land in Area C is undeveloped. Israel, however, does not permit Palestinian construction for residential, commercial or industrial purposes."Danny Rubenstein, "The Palestinian economy: Israel's control over Area C comes at a price". Ynet, 9 February 2015.

70 percent of the area is defined as within settler municipal boundaries, where permits for development are denied to Palestinians. The World Bank estimates that the effect has been to cause a potential loss of $14 billion of revenue for the Palestinian economy.

According to a 2013 EU report, Israeli policies have undermined the Palestinian presence in Area C, with a deterioration in basic services such as water supplies, education and shelter. Nearly 70% of the Palestinian villages are not connected to the water network that serves settlers, which accounts for the fact that Palestinians in the zone use only a quarter to a third of the pro capita consumption of settlers."Palestinians in West Bank's Area C suffer in limbo," Los Angeles Times, 18 May 2013.

Palestinians cannot build in Area C without an army permit; however, building applications are expensive and have a 5% approval rate. As a result, most Palestinians who build there do so illegally. Israel demolishes about 200 buildings per year in Area C.