After the two-decade failure of the Israeli-Palestinian peace process, the putative consensus over the two-state solution is breaking down among political leaders and public opinion, as the feasibility of such a solution on the ground declines. Instead, many have begun to examine hybrid approaches between partition into two states, and the emergence of a single democratic state. This paper focuses on one such model – a confederation of two states with decentralized governance that gives Israelis and Palestinians a measure of self-determination within a single territorial space. In the paper, we chart the turn from partition toward confederal models as a framework for resolving the conflict, describing the leading proposals and exploring the politics that have given rise to them. Drawing on experience elsewhere, we conclude by considering the challenges Palestinians and Israelis will face in reaching agreement on and implementing a confederal scheme.