Stone -also referred to locally as ‘white gold’- is one of the most important natural resources and one of the main extractive industries in Palestine. It is one of many traditional industries with a long history of production and a growing economic value. Despite its authenticity and high value, this industry and its facilities, such as quarries, crushers, cutting firms and stone workshops, are spreading randomly throughout the West Bank-Palestine, thus posing a threat to both natural and built environments and negatively impacting human health. This paper assessed these negative impacts on the environment caused by the stone industry’s facilities in the West Bank by developing a Reality Assessment Model using Geographic Information Systems (GIS) which take into consideration stone industry endemism. The model was also used to categorize the stone industry’s facilities based on a comprehensive criteria. As a conclusion, a categorization of four levels (Level 1 to 4) based on their environmental impact and land suitability. It is found that half of the various types of stone industry’s facilities have a negative environmental impact that causes damage ranging from medium to very high, while the other half do not cause significant damage. Thus, the first-class facilities must be closed, second-class facilities may be closed or remain if their negative impacts are reduced, while both third-class and fourth-class facilities may be kept in their current state by minimizing their major negative impact.