The political and civil unrest that erupted in Timor-Leste in April and May 2006 led to the displacement of approximately 150,000, or 15% of the population, in the capital, Dili and the districts. Makeshift camps sprung up around the city where the displaced had sought refuge in churches, convents, parks, military barracks, the national hospital and at the international airport. The crisis fractured the nation along socio-communal, security, and political lines. Tensions fuelled by communal and regional identities emerged creating a previously unforeseen division between Timorese of eastern and western origin. The crisis exposed deep divisions within the political system and caused the breakdown of state institutions and eventually the resignation of the Prime Minister, Mari Alkatiri, in late June, 2006. The unique and complex nature of urban displacement became a central dynamic of the crisis. The capital became highly polarized and physically segregated1 with camps of predominantly easterners scattered amongst western communities and neighborhoods and violence expanding to include a second conflict between martial arts and ritual arts gangs competing for territorial influence and settling old scores. Over the following year and a half, the numbers of IDPs reduced significantly to approximately 20-25,000 in Dili and 30,000 in the districts. For those IDPs who had returned home or relocated to the districts, there were ongoing security concerns and a deep frustration over unclear government policies on compensation and the right of return. Moreover, ambiguous land and property rights emerged as one of the principle underlying causes of social jealousy and a catalyst for communal conflict.