Hello,
Contributor Rajesh Shri's answer is misleading because it omits mention of the existence of the independent Kingdom of Judea (situated in part of modern day Israel) from Biblical times. His answer also omits mention of the later independent Kingdom of Israel prior to Roman times.
The following information may assist you:
The last "indigenous" state
(meaning run by the natives rather than by a foreign power) that comprised
the area now called Israel
and Palestine, before the formation of the State
of Israel, was the Jewish Hasmonean Kingdom of Judea with its capital at Jerusalem (now referred
to as “East Jerusalem”
also “the Old City”).
You can view the position of the Jewish
Kingdom of Judea, here:
http://www.biblestudy.org/maps/kingdoms-of-judah-and-israel.html
and view the position of the
Jewish Hasmonean Kingdom of Judea, here:
http://en.wikipedia.org/wiki/Hasmonean_dynasty
You can read how the Jewish Hasmonean
Kingdom of Judea
re-gained its independence from the Greek Seleucid empire, by viewing the
following two sources (for best viewing use the download option):
Extract from “Josephus - “Antiquities of
the Jews”, Book 13, part of Paragraph 11 of Chapter 5, to end of Chapter
7.
(PDF file comprising introduction and then one paragraph
to each page, total 16 pages):
https://www.mediafire.com/?kgex1rg9z4ha62f
Extract from “1 Maccabees”, Chapters 14 to
16 inclusive.
(PDF file comprising introduction and then
10 verses to each page, total 13 pages):
https://www.mediafire.com/?cbexfh6uewax5a9
You can view coins from the Jewish Hasmonean
Kingdom of Judea, here:
http://en.wikipedia.org/wiki/Hasmonean_coinage
I hope this helps.
Regards,
Robert.