The article presents a preliminary report of the findings from an excavation conducted near the Gihon Spring, adjacent to the rock-cut chambers, and discusses their possible implications for the urban development of Jerusalem at the end of the Iron Age. The excavation uncovered three structures dating to Iron Age II–C. These structures, which the excavators believe lie outside the line of the Kenyon–Shiloh wall, indicate that in this area on the eastern slope of the City of David hill, settlement continued to exist and even developed, even after the city expanded to the western hill.