The army has slapped a ban on non-resident Israelis from entering the town centre until January 22 in a bid to stop demonstrations.
If follows two days of clashes with Jewish settlers.
Dozens of police have searched houses in the Jewish quarter, preventing residents from returning to their homes, and taking up position on rooftops and outside front doors.
"We decided to demonstrate our toughness and the police presence will be permanent in order to counter the troubles," said Hebron officer Avi Harroch.
A furious Noam Arnon, a spokesman for the Jewish community, accused police of violating the law for not first showing a search warrant.
"We expect police to respect the law," he said.
“The sector of the Jewish quarter of Hebron and the access routes leading to it are declared a closed military zone," a military statement said.
“Hundreds of Israeli citizens have taken part in violent demonstrations in the quarter of the Jewish community of Hebron against security forces as well as the Palestinian residents and their property," the statement continued.
Zero tolerance
Acting Prime Minister Ehud Olmert has vowed zero tolerance towards Jewish families resisting eviction.
"This incident revolves around a particularly violent group," Kadima spokeswoman Maya Jacobs quoted Mr Olmert as telling party members, saying he had ordered the security forces to act decisively towards the rioters.
"Whoever raises his hand against the security forces will not be forgiven," he said.
"There is no justification for this and it will not be tolerated."
Media reports said the army had warned it would arrest any masked demonstrator or stone-thrower.
The unrest is one of the first major challenges facing Acting Prime Minister Olmert.
Israel's largest newspaper, Yediot Aharonot, decrying the situation the "Jewish Intifada in Hebron", a reference to the five-year-old Palestinian uprising.
Defence Minister Shaul Mofaz has reiterated his determination to remove nine Jewish families squatting illegally in a Palestinian fruit and vegetable market in the city, vowing that the authorities will not be intimidated by violence.
The settler families - about 50 people - have taken over some of the stalls and neighbouring buildings of the closed market.
Hundreds of hardline settlers hurled eggs and stones at security forces on Saturday and Sunday.
"On Sunday, I ordered an extra 250 police to deploy to Hebron. We want to apply the law by arresting those responsible for the disturbances so they can be put on trial," Moshe Karadi, Israel's police chief, told public radio.
Settlers moved into the market after Palestinian gunmen killed a baby girl in 2001, arguing that Jews had the property before the creation of the state of Israel in 1948.
In 2003, the Supreme Court backed an appeal by Palestinian traders, and ordered the settlers to be evicted and the market reopened -- neither of which has happened.
Local police commander Shlomo Ephrati said a definite date for the eviction would be determined by a court.
The BBC says Israeli settlers continue to be angry about their government’s decision to withdraw from 25 Jewish settlements in Gaza and the West Bank.
Palestinian compensation
Israel’s Defence Ministry has ordered an investigation to assess the cost of the damage incurred by Palestinian shopkeepers, in Hebron, that has been carried out by carried out by settlers, with a view to compensate them.