Under the rule of the Persians from 538-332 B.C.E., the small province of Yehud (Judea) enjoyed a large degree of autonomy. The Cyrus Cylinder recorded the decree of the Persian ruler, Cyrus, that allowed for the return of the Jews to Judea and the restoration of the holy Temple. Moreover, the Persians tended not to interfere in the religious customs of their subject people. Despite the presence of an official Persian governor in Jerusalem, the High Priest became, in fact, the undisputed leader of the people of Judea.

In the fourth century B.C.E., silver coins were minted in Jerusalem, carrying the inscription "Yahud," the Aramaic word for Judea. This right to mint coins is an indication of the great degree of autonomy granted to Judea in the last decade of Persian rule. In the Persian Empire, the right to mint coins attested to the respected political status of a province. Jerusalem's high status to the Persians was attributable to Jerusalem being a Temple city, the capital of the province of Judea and the seat of the provincial governor who had a military force at his disposal.

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