These findings shed light on potential broader patterns of civilian victimization by insurgents, and the conditions under which insurgents may strive to limit civilian casualties and provide governance. Our results strongly support our hypothesis. We test this hypothesis in three ways: a quantitative analysis of all insurgencies from 1989 to 2003 followed by a qualitative case illustration and the synthetic controls method that leverages the mostly exogenous acquisition of foreign territory by the Kurdistan Workers’ Party (PKK) after the 1991 establishment of the northern Iraq no-fly zone. How does the location of rebel-held territory shape insurgent relations with civilians? We argue that when rebel groups control territory domestically, they are strongly incentivized to cultivate mutually beneficial relations with civilians living in their territory and limit their violence against them, while insurgencies with foreign territorial control are incentivized to deploy violence against civilians to gain compliance and extract resources.