Legally, a community settlement operates as a
cooperative in which all property-owning residents must be members. To enforce the restrictions on reselling property, property on a community settlement is formally not sold, but rather
leased. The land of the entire settlement is owned by one entity (usually the
Jewish National Fund through the
Israel Land Administration), which leases out individual plots only to members of the cooperative. In that sense, a community settlement is much like a village-sized
housing cooperative. Israeli law bans the allocation of land resources on a preferential basis. According to Eyal Weizman, the community settlement system developed techniques to bypass those laws by having state land, either in Israel or in the Palestinian territories, placed in the custody of legal bodies registered in the United States, Jewish Agency or the World Zionist Organization. By this means, he asserts, the state of Israel was 'enabled to circumvent its own laws'. The residents cooperative may also own private businesses and service industries within or in proximity to the settlement. These are often used for keeping certain public facilities, such as
preschool,
synagogues,
grocery stores, sport facilities, youth clubs,
swimming pools, etc., in the hands of the entire community. However, unlike a
kibbutz or a
moshav, the economic cooperation between residents is very loose - most residents work outside the settlement, and residents only pay minimal
property taxes to the cooperative to help maintain the village and its public facilities. Note that despite a popular misconception, the mere existence of community-owned facilities is
not what differentiates community settlements from ordinary villages, as most ordinary villages also have the same types of facilities - preschool, synagogues, sport centers and sometimes even swimming pools - owned and operated by the village. Likewise, the mere existence of a democratic body of residents which makes decisions and organizes events for the whole community is
not a defining feature of community settlements; ordinary villages also have their own local governments which are democratically elected by their residents. Most community settlements are small, typically amounting to communities of 50-500 families, and are therefore too small to form their own separate formal
municipalities. Instead, the residents' cooperative is recognized by the state of Israel as a
local committee. Several such local committees can, for example, form together a
regional council, which is one of the three types of
local government in Israel. In practice, the regional council often has more impact on the residents' life than the cooperative of their own settlement. It is the regional council which will normally run schools, build roads, collect property taxes, and even run its own screening process. ==Controversy==