Palestine is a city in Anderson County, Texas, in the United States. As of the 2000 census, the city population was 17,598, and 18,458 in the 2009 estimate. It is the county seat of Anderson County and is situated in East Texas. Palestine was named for Palestine, Illinois, by Daniel Parker. The largest employer is the Texas Department of Criminal Justice, which employs more than 3,900. Another 1,600 work at two Wal-Mart distribution centers.