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Against the backdrop of growing tensions in Jerusalem, the objective of this paper is to present an outline for how to de-escalate the violence and implement a policy for managing the city that is informed by hope rather than anxiety. The paper presents guidelines for action in the current situation, based on the following premises: Jerusalem is the present home and future capital of two peoples; a diplomatic agreement on the city is currently remote; unilateral steps play into the hands of those who oppose an agreed upon solution; in the current reality, policies must be adopted to improve the quality of life and personal security of all residents of the city. A response is also offered to recent proposals for unilateral separation of Palestinian neighborhoods from Jerusalem.