Since 1949, when Israel decl her borders, and the UN accepted them, Israel has the right to build within those borders. Recently, Palestine declared her border at the Green LIne. The UN accepted that border. So, Jews may build up to the Green LIne.
Jerusalem suburb of Even Sapir evacuated as wildfire spreads (Haaretz)
from the article: After uproar, Netanyahu orders stop to West Bank housing tenders