evidence: Jerusalem in the Israeli-Palestinian conflict: Whose capital is it? [...] For decades Jerusalem’s status has been among the most contentious issues of the Israeli-Palestinian conflict. The city is home to hundreds of thousands of people who belong to either nationality, Israeli or Palestinian, and both Israelis and Palestinians want the historic city to serve as their capital. Some proponents of a two-state solution have proposed splitting the city in two: it was divided after the first Arab-Israeli war (1948–49) into a western portion under Israeli rule, called Jerusalem, and an eastern portion under Arab (Jordanian) rule, called East Jerusalem. But Israel occupied East Jerusalem in the Six-Day War (1967) and applied Israeli law and administration there shortly afterward. In 1980 Israel declared East Jerusalem part of its "complete and united" capital, and since then Israeli development in East Jerusalem has complicated the practicality of splitting the city once again. But, at the same time, the eastern portion is heavily populated by Palestinians who want to return it to Arab rule, and their communities retain a central place in the Palestinian economy.