The situation in Apartheid era South Africa is not exactly the same as in the occupied West Bank, but close enough to be cited as a legitimate analogy. As #1 pointed out the key element of Apartheid as applied to blacks was the assignment to them of citizenship in phony bantustans. This allowed the government to treat the blacks living in most of the country as non-citizens of South Africa with very few rights. Israeli apartheid has similarly tried to limit Palestinians in the territories to local autonomy in a portion of the occupied territories and to deny them the rights of Israeli citizenship, while the settlers in their midst enjoy full rights of Israeli citizenship, green grass and swimming pools and unlimited access on apartheid roads. Only at Taba and with Olmert in the dying days of his rule has there been any talk of granting the Palestinians a true contiguous state, rather than what Colin Powell termed a "phony state that's diced into a thousand different pieces."
from the article: 28 kilometers of distilled apartheid