This chapter re-examines the relationship between Israel and the Palestinian ‘self-rule’ in light of the ‘indirect colonial rule’ strategy that was enforced on colonies by the colonial powers in the late colonial era. It argues that the post-Oslo colonization of the Occupied Palestinian Territories (OPT) has been much more effective than the previous 25 years of the Israeli occupation (1967–1993) because it relies on indirect mechanisms of governance. Yet, far predating the Oslo Accords, the idea of indirect rule was integral to all Israeli strategic planning toward the OPT which revolved around some form of Palestinian autonomy and self-rule.