About 92 percent of Israelis live in urban areas. Many modern towns and cities, blending the old and the new, are built on sites known since antiquity, among them Jerusalem, Safed, Be'er Sheva, Tiberias, and Akko. Others such as Rehovot, Hadera, Petach Tikva, and Rishon Lezion began as agricultural villages in the pre-state era and gradually evolved into major population centers. Development towns such as Karmiel and Kiryat Gat were built in the early years of the state to accommodate the rapid population growth generated by mass immigration, as well as to help distribute the population throughout the country and to promote a closely interlocked rural and urban economy by drawing industry and services to previously unpopulated areas.

Urban buildings are constructed mostly of stone, concrete block and stucco. They vary in style from the restored remnants of past centuries to dwellings built to accommodate the population in pre-state times; from neighborhood projects hastily erected to house the masses who arrived with the establishment of the state to residential, commercial and institutional buildings of recent decades, which show the effects of modern planning.

Most residential areas are separated from commercial and industrial zones, with extensive, well-tended parks and numerous playgrounds situated within the town limits. Israel's four main cities are Jerusalem the capital; Tel Aviv, focus of the country's industrial, commercial, financial and cultural life, founded in 1909 as the first Jewish city in modern times; Haifa, a major Mediterranean port and the industrial center of northern Israel; and Be'er Sheva, the largest population center in the south.

JERUSALEM has stood at the center of the Jewish people's national and spiritual life since King David made it the capital of his kingdom over 3,000 years ago. From the destruction of Jerusalem and its Temple in 70 CE to the restoration of Jewish sovereignty in the Land with the establishment of the State of Israel in 1948, the city was under the control of successive foreign powers; most left their imprint on it, but none made it their national capital. Until the latter half of the 19th century, Jerusalem consisted of a walled city made up of four distinct quarters: Jewish, Muslim, Armenian and Christian. From about 1860 onwards, the growing Jewish population, which had maintained a virtually continuous presence in the city through the ages, became a majority and began to build new neighborhoods outside the wall, forming the nucleus of modern Jerusalem.

Under British rule (1918-1948), Jerusalem was transformed from a neglected, poverty-ridden provincial town of the Ottoman Empire into a flourishing city. During this period, many new neighborhoods were established, each reflecting the character of the particular ethnic group by or for whom it was built.

The armistice line drawn at the end of the 1948-49 War of Independence divided Jerusalem in two, with Jordan controlling the eastern section, including the Old City, and Israel the western sector, which became the country's capital. For the next 19 years, concrete walls and barbed wire sealed off one half of the city from the other.

Reunited as the result of the 1967 Six-Day War, Jerusalem is today Israel's largest city with a population of some 763,600. It is a city which looks simultaneously to its past and its future, by restoring ancient sites, improving infrastructure and building new neighborhoods; it is the capital of Israel, the location of the President's residence, the Knesset (Israel's parliament), the Supreme Court and government ministries; it is a city of diverse populations - Jews and Arabs, religiously observant and secular, Eastern and Western; it is a city where the arts flourish within a vibrant cultural life which is at once international in scope and uniquely Israeli.

Many places sacred to three major world religions are located in Jerusalem: the Western Wall, the last remnant of the Second Temple and a focus of prayer and source of inspiration for Jews in Israel and all over the world; the Dome of the Rock, marking the traditional site of the Prophet Muhammad's ascent to heaven; the Al-Aqsa mosque, considered Islam's third holiest place after Mecca and Medina; the Garden of Gethsemane, the Church of the Holy Sepulcher, the Via Dolorosa and other Christian sites associated with the life and death of Jesus of Nazareth, to name but a few. The almost two million visitors who crowd Jerusalem every year come to explore its well-maintained historical sites and holy places, and to enjoy aspects of its multi-ethnic, multi-cultural character.

TEL AVIV-YAFO, a modern city on the Mediterranean coast, is Israel's commercial and financial center as well as the focus of its cultural life. Headquartered there are most industrial organizations, the stock exchange, major newspapers, commercial centers, and publishing houses.

Tel Aviv, the first all-Jewish city in modern times, was founded in 1909 as a suburb of Jaffa (Yafo), one of the oldest urban settlements in the world. In 1934 Tel Aviv was granted municipal status, and in 1950 it was renamed Tel Aviv-Yafo, the new municipality absorbing old Jaffa. The area around the ancient port of Jaffa has been developed into an artists' colony and tourist center, with galleries, restaurants, and nightclubs. Tel Aviv's "White City," a vast ensemble of buildings from the 1930s-1950s in the Modernist Movement style, has been recognized by UNESCO as a World Heritage site.

HAIFA, on the Mediterranean Sea, rises from the coastline over the slopes of Mount Carmel. It is built on three topographical levels: the lower city, partly on land recovered from the sea, is the commercial center with harbor facilities; the middle level is an older residential area; and the top level consists of rapidly expanding modern neighborhoods with tree-lined streets, parks, and pine woods overlooking the industrial zones and sandy beaches on the shore of the wide bay below. A major deep-water port, Haifa is a focus of international trade and commerce. It also serves as the administrative center of northern Israel.

BE'ER SHEVA, in the northern Negev, is located at the intersection of routes leading to the Dead Sea and Eilat. It is a new city built on an ancient site, dating back to the age of the Patriarchs some 3,500 years ago. Called the 'Capital of the Negev,' Be'er Sheva is an administrative and economic center, with regional government offices and institutions of health, education, and culture which serve all of southern Israel.

About 8 percent of the population lives in rural areas, making their home either in the kibbutz or moshav, forms of agricultural settlement which were developed during the early part of the 20th century, or in one of the country's many villages.

The KIBBUTZ was established as a social and economic unit in which property and means of production are communally owned and decisions are made by the general assembly of its members. While demanding from its members responsibility and commitment to the community, the kibbutz provides them with their needs from infancy to old age.

Having come a long way from their pioneer beginnings when agriculture was their economic mainstay, kibbutzim are now diversifying their production branches, expanding into various kinds of industry and services. Although the kibbutzim constitute 1.7 percent of Israel's population (in some 267 settlements), their share of the country's production far exceeds this proportion, as they grow some 16 percent of farm produce and manufacture about 4 percent of industrial output (excluding diamonds). Tourist facilities, catering and factory outlet stores have recently become an important part of the kibbutz economy.

The kibbutz, which has distinguished itself with its contribution to the establishment and development of the state, is today seeking ways to meet the challenges of modern life in the technological age, while maintaining its original egalitarian framework. While these adjustments have necessitated far-reaching changes, it is believed that this ability to adapt and compromise is the key to its survival.

The MOSHAV is an agricultural village in which each family maintains its own farm and household. Originally, cooperation extended to purchasing, marketing and the provision of community services; today, moshav farmers have chosen to be more independent economically. 441 moshavim, averaging about 60 families each and comprising some 3.4 percent of the country's population, supply a large portion of the total farm produce.

ARAB AND DRUZE RURAL VILLAGES make up about 1.7 percent of Israel's population. Houses and land are privately owned, and farmers cultivate and market their crops on an individual basis. In recent years, with the expansion of the villages and the increasing mechanization of agriculture, more people work either in local light industry or in nearby urban and rural centers.

About half of the country's 170,000 Bedouin Arabs are no longer nomads and live in permanent settlements. Others follow their traditional way of life, although most stay in one location.

The YISHUV KEHILATI (COMMUNITY SETTLEMENT) is a new form of rural settlement, with the 107 existing communities ranging in size from several dozens to several hundreds of families. Although each family's economic life is completely independent and most members work outside the community, the level of the members' voluntary participation in community life is very high.

The central governing institution is the Members' Assembly, where important issues and guiding principles are decided among the members by popular vote. The community's budget is approved by the members at an annual meeting. Alongside management and oversight committees, a number of working groups deal with areas such as education, culture, youth, finances, religion and the like. A secretariat (sometimes paid, sometimes elected volunteers) runs the community's day-to-day affairs. New members are accepted only with the approval of the community.