In 2003, Rabbi Melchior, in conjunction with MK Issam Makhoul, established the Knesset Caucus for Jewish–Arab Coexistence. The outlook behind the initiative is that the Knesset should deal systematically, and courageously with the full range of problems and aspects of Jewish–Arab relations in Israel. In the course of its activities, the caucus held sessions on urgent issues on the coexistence agenda, including the status of the Arab woman in Israel, employment and industry in the Arab sector, Interior Ministry services for inhabitants of eastern Jerusalem, and implementation of the Orr Committee recommendations, to name just a few.

In the 17th Knesset, Rabbi Melchior’s co-chair of the Caucus is MK Dr. Hanna Swaid.

The activities of the Knesset Caucus for Jewish–Arab Coexistence are coordinated with those of the Forum for Civic Consensus, which operates under the auspices of Yahad Council. The forum, of which Rabbi Melchior is honorary chair, promotes and initiates joined educational and social activities between Arabs and Jews, sponsors public discussions that will enhance awareness of issues in Arab–Jewish relations, and pushes for decisions and legislation to correct problems.

The Forum for Civic Consensus established the Ata’a–Matan Center—Civic Bureau in Eastern Jerusalem, which provides referral services for inhabitants of Eastern Jerusalem with regard to services of the Ministry of the Interior. This is part of a major effort to change and improve the services to which 250,000 inhabitants of the eastern part of the city are entitled. The bureau was established in conjunction with the Knesset Caucus for Jewish–Arab Coexistence, the Jerusalem Municipal Welfare Department, Beit Hanina Community Center, and the Jerusalem Foundation.

At the initiative of the Forum for Civil Consensus, the Irwin Green Family Center for Child Development was established in Nazareth in 2004. The center, the first of its kind in Israel, provides service concurrently to some 600 Arab and Jewish children in Nazareth, Upper Nazareth, and surrounding localities. The establishment of the center marks the beginning of the fulfillment of a vision: the creation of a three way partnership comprised of the State of Israel, the Arabs of Israel, and Diaspora Jewry, as part of the effort to create a democratic civil society in Israel and to improve relations between Jewish and Arab citizens. The 1,000 square meter center, built on the grounds of the French Hospital in Nazareth, provides crucial services for children with disabilities and special needs: educational and medical evaluation, occupational therapy, physical therapy, communication clinic services, art and music therapy, and developmental psychology. Several institutions joined the initiative at Rabbi Melchior’s request: the Municipality of Nazareth, the French Hospital in Nazareth, Ashalim (associated with the American Jewish Joint Distribution Committee), Clalit Health Services, the Helen Bader Foundation, and the Nazareth Foundation.

In 2006, the forum established an interfaith committee, chaired by MKs Rabbi Melchior and Sheikh Ibrahim Sarsour, to care for scores of Muslim and Christian holy places that have been abandoned and are in a deplorable state of neglect.

The issue of abandoned holy places is one of the most painful topics for members of Israel’s Muslim and Christian communities. It overshadows relations between the state and citizens from these two communities, who regard the state’s disregard of their demands-to preserve the shrines and their sanctity—as a severe affront to their feelings and faith.