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There is little chance of a single state where all of the Palestinians and all of the Jews live together in harmony at this stage of the game. Explaining why this is true would take some time, so just take my word for it.

There is hope of a two state solution but geography creates a challenge. A "split" Palestinian state with the (very small) area of Gaza on the sea and the larger balance landlocked between Israel and Jordan presents both administrative and logistical challenges (especially with the split governments currently in power.

As has been pointed out, Israel has a large Arab (Palestinian) population which has been (more or less) assimilated. In addition, there are Palestinians which came along with the territory of Old Jerusalem when it was annexed (these are not nearly as assimilated).

The rest of the Palestinian territories, while theoretically under Israeli administration, are separated from Israel by walls, fences and guard posts and there is little mixing in either direction. There are political complications caused by Israeli "settlements" which have been built in the Palestinian areas (without desiring a discussion of these, I will admit that I am opposed to this practice) and these will have to be addressed in the context of any formal decision.

Any separation of the states will also have to take into account the aquifer locations as, without water, this is a very hard neighborhood to survive in.

To put the size of the Gaza Strip in perspective, it is a roughly rectangular piece of land about 25 miles by about 5 miles.

According to the 1997 census, Gaza had an overwhelmingly young population with more than half being between the ages of infancy to 19 (60.8%). About 28.8% were between the ages of 20 to 44, 7.7% between 45 and 64, and 3.9% were over the age of 64.

A significant number of Gaza's pre-1948 residents were Egyptians or their descendants who had fled political turmoil in Muhammad Ali's Egypt. A massive influx of Palestinian refugees swelled Gaza's population after the 1948 Arab-Israeli War. By 1967, the population had grown to about six times its 1948 size. In 1997, 51.8% of Gaza's inhabitants were refugees or their descendants. The city's population has continued to increase since that time to 449,221 in 2009, making it the largest city in the Palestinian territories. Gaza has one of the highest overall growth rates and population densities in the world: 9,982.69/km² (26,424.76/mi²).

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