After the war, Israel soon annexed East Jerusalem. It established a unified Jerusalem as its capital and has established settlements in the West Bank, the Palestinian land, over the decades, but has not annexed any of that territory.
The country has cited the need for a presence in the West Bank for security, but Jewish settlers -- some for religious reasons and others seeking affordable dwellings -- have made their homes in the land.
That consistently growing presence in East Jerusalem and the West Bank has caused great tension between Israel and the Arab world, including the Palestinians.
MORE: http://www.cnn.com/2013/01/31/world/meast/u-n--israel-settlements/index.html
