The "good deal" you speak of was a joke. Only fools and idiots would fall for it. Without control of their own water in their land, the Palestinians would be permanently subject to Israeli water rationing, which is currently rationed 20 percent for Palestinians and 80 percent for Israel. That is why Israel is green and occupied Palestine is dust. Simply put, Israel could slowly strangle the Palestinians and starve them out for lack of water. That was the deal you think was so generous.
At least 1,000 Israeli Arabs protest death of Palestinian infant in deadly West Bank arson (Haaretz)