Israeli troops have begun to withdraw from the West Bank .
The pullout follows a breakthrough on Tuesday that ended weeks of deadlock.
Israel and Palestinian negotiators signed an agreement that will pull Israeli troops out of 5 percent of the West Bank before the weekend.
The withdrawal, originally due to take place last November, had been delayed over disagreements on Israeli demands that it determines which areas would be handed over.
Under the compromise reached on Tuesday, the withdrawal will be carried out as originally planned by Israel - but the Israelis have agreed to incorporate Palestinian requests as it sketches in the map for the next Israeli withdrawal, in two weeks time.
At Yosef Army Camp, near Nablus in the West Bank Israeli soldiers lowered the Israel's flag and left the compound on Wednesday.
One soldier's friendly handshakes with waiting Palestinians eager to enter the compound, reflected the fresh mood created by Tuesday's deal.
The breakthrough clears the way for both sides try to meet a February 13 deadline on the creation of a framework for a final peace settlement.
But there are still a number of issues that will not be easy to resolve.
The Palestinians want all of the West Bank and Gaza Strip, as well as east Jerusalem, for their state, while Israel wants to keep all of Jerusalem and nearly half the West Bank.
At the Yosef base the Palestinians quickly raised their flag on the vacant mast.
They hope the Israeli withdrawal will pave the way for a final peace settlement and the declaration of Palestine as an independent state.
In all, the Israeli army was to transfer six bases and camps in the northern and southern West Bank, by Thursday.
The pullbacks were second of three stipulated in a September interim peace agreement.
After the final withdrawal, scheduled for January 20, the Palestinians will have full or partial control over 40 percent of the West Bank.
In Wednesday's redeployment Israel will hand back 2 percent of the West Bank around the town of Ramallah to full Palestinian control.
An additional 3 percent near the towns of Nablus, Jenin and Hebron will go from sole Israeli jurisdiction to shared rule.