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In practical terms, a project known as E-1 would provide 3,000 or so new housing units for Israelis in an area between east Jerusalem — which the Palestinians hope will someday be their capital — and the large Israeli settlement of Maaleh Adumim.
But numbers can be deceiving: Palestinians are renewing their objections to the growing number of Israeli settlements, and many fear E-1 could tip the balance in a way that makes an Israeli-Palestinian peace agreement impossible.
To understand why the Israeli government wants to build E-1, climb to the top of Mount Scopus. From there, former government spokesperson Miri Eisin says, it's obvious that Jerusalem doesn't have much room to grow.