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Following an appeal to the High Court of Justice, the state promised to dismantle the council and establish a regular regional council, where each village had an elected local committee.

The Ministry of Interior declared that the local concerns had been considered, but were not consistent with the ministry's policy of not creating local councils for small villages in fear of spending public money, and the High Court of Justice rejected the appeal.

[3] Eventually, in order to allay local concerns, the Interior Ministry established an investigative committee to examine other options, and in 1996, decided to split the regional council into two local councils: Ma'ale Iron, and Basma.

According to the plan, Basma was to be united with Arara and Kfar Qara, while Mu'awiya will be moved to Ma'ale Iron.