Voting is taking place in Israel in an early election called by Prime Minister Ehud Olmert, who is stepping down.
The favourite to become prime minister is Binyamin Netanyahu, leader of the right-wing opposition party, Likud.
But his opinion-poll lead has been reduced in recent weeks by Tzipi Livni, who heads the centrist Kadima, the largest party in the government.
Mr Olmert announced months ago that he was standing down in the face of corruption allegations.
Ms Livni's attempt to form a new government without elections failed last year.
Leaders confident
Voting across the country started at 0700 local time (0500 GMT) and will close at 2200 local time (2000 GMT).
Israel imposed a closure on Palestinian-run areas of the occupied West Bank, banning Palestinians from entering Israel except for medical emergencies. Israeli soldiers have already voted.
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Mr Netanyahu and his wife Sarah cast their vote in Jerusalem.
"This felt good," the Likud leader said. "The people want a change and they will choose it today. Those who want to embark on a new path would rally with the Likud and with me."
After voting in Tel Aviv, Ms Livni urged other voters to do the same, despite heavy rain and strong winds.
"I have just done what I want every citizen in Israel to do - first of all to get out of the house, rain or not, cold or hot, go out, go to the polling station, go into the booth, close your eyes, and vote - not out of fear or despair - and think about hope," she said.
Labour leader Ehud Barak, Israel's current defence minister, also voted in Tel Aviv. "I am sure we will emerge stronger from this day," he said.
The head of the nationalist Yisrael Beiteinu party, Avigdor Lieberman, voted at polling station in the West Bank settlement of Nokdim.
"There are many parties who talk, but there is one party that knows how to act not only talk. We did a good job during the elections, we will do an even better job after the elections, thank you," he said.
Bad weather
On Monday, Israel's politicians made a final push for votes.
Mr Netanyahu and Mr Lieberman, made visits to one of Judaism's holiest sites, the Western Wall in the Old City of Jerusalem - regarded as occupied territory under international law.
Ms Livni and Mr Barak both planted trees - in different places.
 Israeli soldiers in the West Bank cast their votes on Monday |
Opinion polls suggest that about 20% of voters are not sure who to vote for - and that many others are unenthusiastic about their choices.
Bad weather may keep voter turnout low. About 5.3 million people are eligible to vote at more than 9,000 polling stations.
Even if Ms Livni does pull ahead of Mr Netanyahu, pollsters think right-wing parties are likely to dominate the Knesset and she could struggle to form a coalition, says the BBC's Bethany Bell in Jerusalem.
Following the recent conflict in Gaza, many Israelis say security is what counts, and that they do not trust the peace process or the Palestinians.
In such a climate, Mr Lieberman - with his strong, often anti-Arab, rhetoric - is forecast to make gains, our correspondent adds.
Arab voters of Palestinian origin make up about one-fifth of the electorate.
Scuffles broke out in one Israeli Arab town when a Jewish hardliner arrived to observe the polling, in what was seen as a provocative act by locals.
National Union candidate Aryeh Eldad was escorted out of Umm al-Fahm by police, who also arrested five stone throwers.
Once the final votes are counted, the complicated process of building a coalition will begin - something that could take several weeks.
If you want to know who gained from the destructive invasion of Gaza wait until polls close today in Israel. Given the public opinion polls that all show security issue as a top concern and distrust (and dislike) for Palestinians climbing, it seems likely that right-wingers will gain disproportionately in this election. Sad. This will set the peace process back years. And nothing will change.
It is a cold comfort that this result seems to fit with some current research we've conducting. What we have found so far (in numerous statistical tests) is that there is not much learning between Palestinians and Israelis. Their leadership seems to be guided more by expected domestic political gain than any process of reciprocal or evolutionary learning. But these results are preliminary, and I hope they are far from robust.
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