Israel gave final approval Wednesday for a controversial settlement project in the occupied West Bank that would effectively cut the territory in two, and that Palestinians and rights groups say could destroy hopes for a future Palestinian state.

The 5,000 Palestinians living on the small territory separating East Jerusalem from the Israeli settlement of Ma'ale Adumim have been ordered to evacuate. The operation to destroy their homes could begin as early as Thursday,

Construction in E1 is expected to begin immediately, while Ashahel’s plan reaches the deposit stage, a key step toward final approval. Israel’s Civil Administration approved major construction projects in West Bank,