Heritage is a key site of politics in the Middle East. Recent episodes of the relentless destruction and construction of heritage in the region convey just how deeply intertwined it is with the making (and unmaking) of the postcolonial state. In Palestine/Israel, heritage has developed over a long history into an important site where both state power and resistance against it are produced, reshaped, and disseminated. A current proliferation of urban regeneration projects there is linked to the struggle against the ongoing occupation and colonization of Palestinian lands, as well as the incomplete, truncated emergence of a Palestinian state. Most of these heritage projects are carried out by semi- or nongovernmental organizations (NGOs). In this essay, I argue for the value of thinking about heritage in terms of government and state-making, or more precisely in terms of a Foucauldian understanding of governmentality, to reveal the kind of work it performs in Palestine and beyond. States govern also by heritage, and both states and the local communities they attempt to control mobilize the language of heritage for a variety of different purposes in a variety of different settings. What is distinctive about Palestine is the central role NGOs play in the institutionalization of a heritage field. In their work, they collapse the divide between mobilizing heritage to defend vulnerable communities and resist the encroachment of the (Israeli) state, and using heritage to develop institutions and help build the (Palestinian) state.