What is Palestinian Territory (occupied)???

On my site meter, the location given for one of the visitors to my site was listed as "Palestinian Territory (occupied)".

I must admit, I'm stumped on that one. Does that refer to Israel, from the Arab perspective?

Of course, this question is coming from the same person who once answered the question "state of birth?" as "legitimate", it never occuring to me that it meant, "State of birth", which would, of course, have been properly answered, "Texas."