The Palestinian territories  consist of two physically separate entities, the West Bank and the Gaza Strip and are not considered part of any sovereign nation. The West Bank (including East Jerusalem) and Gaza Strip have been under Israeli governance since 1967 (Israel unilaterally withdrew its settlements from Gaza in 2005 although retains effective control of the region). The final status of the territory remains the subject of ongoing and future negotiations. The stated outcome of negotiations and final status talks is currently regarded as the eventual creation of a new, sovereign state - to be called simply Palestine.
The Palestinian National Authority (PNA or PA) is a semi-autonomous state institution (created in agreement with Israel and the United Nations) that officially is in charge of most of the Palestinian Territories. The PNA, dominated by the political faction Fatah, de facto only has control of certain areas of the West Bank depending upon the region; other areas are under Israeli control. Hamas, a rival group of Fatah, is de facto in control of the Gaza Strip. Hamas claims to be the only sole legitimate Palestinian government, but it is not internationally recognized.
The occupied Palestinian territory, in a wider sense and together with Israel, are considered the Holy Land for three of the world's major religions: Judaism, Christianity and Islam. Many sites of religious and archeological significance from the so-called Biblical periods are to be found within the current boundaries of the Palestinian National Authority, most notably Bethlehem, Hebron, Nablus and Jericho and of course, East Jerusalem. East Jerusalem is under complete Israeli control and considered by Israel to be part of its state although the annexation of land is considered illegal by the United Nations.
The current Palestinian Territories are a sub-division of pre-1948, British Mandatory Palestine. United Nations-projected Arab-held areas of the former Mandate were greatly reduced after the 1948-1949 Israel War of Independence, when the embryonic state of Israel was first attacked by its Arab neighbours, then successfully defeated their armies, leading to a re-drawing of the internationally-recognised borders of Israel. Of course, these hostilities were accompanied by much bloodshed and displacement on both sides, much of the focus being on Palestinian refugees who fled in large numbers to neighbouring Arab countries, or to Gaza and the West Bank. The West Bank and Gaza Strip have been under Israeli occupation since 1967. Prior to that, the West Bank was under Jordanian occupation (Jordan annexed the West Bank in 1950 but this was only recognized by themselves and the United Kingdom) and the Gaza Strip was under Egyptian control.
See also West Bank.
Bus Bus services operate on limited routes and times except for those around Jerusalem. You are almost always advised to use Shared Taxis which will be quicker although marginally more expensive. Buses, like shared taxis will also tend to wait until full before departing. You can hail a bus on any road.
Shared Taxi: Most Shared Taxis have fixed bus-stations, often car-parks near the center of towns or cities. Larger minivans carry 7 passengers and inner-city shared taxis carry 4. Fares are fixed and overcharging on these services is extremely rare. Shared taxis are often distinguished with black stripes on front and back at the sides, particularly the normal-sized cars serving inner-city routes. You should pay the driver directly once the journey has begun, although you can wait until you reach your destination. Passengers will often work out the change between themselves. As you may be sharing with conservative or religious people, you may observe a certain etiquette, particularly when it comes to men and women sitting next to each other.
Private Taxi: Private taxis are very common and can be hailed down at any point. Fares should be negotiated in advance although there are fixed rates for common journeys and it is worth checking with a local in advance. Some taxis will operate on the meter if requested although this is rare. Rates between cities vary widely and some taxis are not permitted to operate inter-city.
Car For the West Bank, driving a private car is a very convenient way to see more. You can hire cars in Ramallah with green (Palestinian) plates although it is not clear whether foreigners are allowed to drive in Palestinian registered cars. You can also hire cars with yellow plates in Jerusalem which can be driven in Israel and the West Bank. Try Good Luck Cars (02 627 7033) opposite the American Colony Hotel.
Currency: Shekels, though US dollars seem to be widely accepted, especially at tourist shops (Jericho and Bethlehem, for example).
Shawarma and falafel sandwiches are really popular foods for Palestinians. As well as olives and hummus. It is traditional to eat with bread and not a spoon or fork. It is unusual to eat a meal without bread.
Taybeh Beer is the only Palestinian national beer with 5 and 6 percent of alcohol. It has a mild taste.
It is possible to study Arabic and other subjects in the West Bank. Specifically at Birzeit University near Ramallah.
If you are interested in learning about the social, political and cultural aspects of Palestinian life, there are several programs and organizations offering courses, workshops or learning tours, such as: The All Nations Cafe  in the Bethlehem - Jerusalem area.
Because of ongoing conflict in this area of the world, travellers should take notice of travel advisories issued by various embassies before undertaking travel here. Security concerns result in travel between Israel and the Palestinian Territories being tightly controlled on occasions. Travellers should ensure that their travel documentation is entirely in order and should monitor local news channels in case the security situation changes suddenly.
A few hints for a successful trip:
Wearing or displaying obvious signs of Jewish faith is not going to win you any friends. Women should dress conservatively and men should also avoid shorts.
Delays may occur at checkpoints unexpectedly, especially if there has been recent violence or political events, and especially if you are Arab or Arab-looking. Sometimes it may be quicker to walk through a checkpoint on foot rather than on a vehicle, and then take a taxi to your destination once you get through.
It is highly advised to keep Palestinian flags, PA/PLO pamphlets, and similar articles out of plain sight when going through checkpoints.
Be sure to carry shekels with you when departing, as there is a departure tax. If you are leaving through one of the ground crossings, such as the Allenby/King Hussein Bridge to Jordan, it's a good idea to try to get to the border as early as possible, especially in the busy summer season.