One of the stated objectives of various international development organizations is “to reduce poverty through sustainable economicdevelopment.” Therefore, the question is how can transport systems bestcontribute to poverty alleviation? There are no direct and easy answers for this question. There are considerable changes in the transport system operations in the West Bank during the years of the Intifadah and due to the Israeli Occupation Authorities (IOA) measures on the road network. So it is important to study the impact of the current transportation system on poverty and standards of living. The primary objective of this study is to investigate the impact of current conditions of the transport system on the socio-economic aspects of the Palestinian life, particularly poverty and quality of life (in terms of transport accessibility, expenditures on transport, travel time and cost, affordability of public transportation, and access to markets and employment). The methodology of this research is based (a) reviewing related studies at the local and international levels, (b) surveying related existing conditions (related transport and socio-economic indicators), and (c) field surveying of transport and living conditions of selected communities. Nablus City was taken as a case study in this project.