Hundreds of Israelis, Palestinians and foreigners arrived at a rally in the West Bank village of Bilin on Friday in celebration of the High Court of Justice's decision to order the government to change the fence's route in the area.
Organizers claimed there were some 1,500 protesters while the Israel Defense Forces reported only 500.
Palestinian Authority officials, including Prime Minister Salam Fayyad and several ministers, participated in the demonstration. Israeli-Arab MKs Mohammad Barakeh of Hadash and Jamal Zahalka of Balad were also present.
The village's residents thanked all the activists for standing by them during their struggle against the separation fence.
No irregularities or clashes occurred in the peaceful rally, and the protestors, including some 200 Israelis, carried signs against the construction of the fence. The event was filmed by Israeli security forces.
Bilin sources said the High Court's ruling this week was a testament to the victory of the non-violent protest they patiently carried out over a long period of time.
Speaking at the rally, Fayyad said, "This is a big day, a day of victory for the Palestinians and a big day for peace between the Israelis and the Palestinians.
"I thank the residents of Bilin for their constant struggle for over two years, for this important victory, the victory of life and peace," Fayyad said, speaking for the Palestinian government.