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In 1918, the outpost became a settlement; one of four Jewish settlements in the area: Tel Hai, Kfar Giladi, Metulla and Hamra.

The Tel Hai area was isolated from the rest of Israel; the British controlled an area 35 kilometres to the south, near Ayelet Hashachar. Whereas the area around Tel Hai was supposedly controlled by the French, they could not prevent continuing Arab attacks on the Jewish settlements. As a result, the settlers of Metulla and Hamra were forced to make the decision to leave their homes. The settlers of Kfar Giladi and Tel Hai, on the other hand, decided to remain. The Arabs continued their attacks, both against the French and Jews. The year was 1920.