Outposts usually grow into regular settlements. Here is a video (go to 1:50 in and watch to the end) that shows exactly how the process starts - a few trailers in this case watched over by an Israeli Army vehicle on a nearby hill. Remember that it is legal for those in outposts to carry firearms, while the Palestinians are forbidden the possession of weapons.
For an excellent overview of the outpost-to-settlement process, watch the following video from Jewish-American activist Anna Baltzer. She rightly emphasizes the economic support America gives to Israel that subsidizes the process and shows how settlers can attack Palestinians. She goes on to make the distinction between Jews, Israelis and Zionists, a distinction the Israeli authorities do not wish anyone to make. The entire video is worth watching. Anna has created a tutorial DVD covering the gamut of topics for the conflict.