Israeli security forces have taken up positions around the driver's home
Israel's vice premier has said the home district of the Palestinian who carried out Wednesday's bulldozer attack should be cut off from the rest of Jerusalem.
Haim Ramon said residents of Sur Bahir in east Jerusalem should also be stripped of their Israeli ID cards.
Mr Ramon proposed changing the route of the barrier which separates Jerusalem from the West Bank.
About a third of Jerusalem's population is Palestinian, living in an area occupied by Israel in the 1967 war.
Mr Ramon said he disagreed with those who argued that demolishing the home of the bulldozer attacker would help prevent future attacks, but he said the house should be demolished regardless, if it was legally possible.
The barrier has already cut off several neighbourhoods housing tens of thousands of Palestinian holders of Israeli Jerusalem IDs.
He said the Jabal al-Mukabir area, home of a Palestinian who killed eight Jewish students in March, should be given the same treatment.
Sur Bahir resident Hussam Dwayat went on the rampage in west Jerusalem on Wednesday after he drove a front-loader vehicle from the building site where he worked into the street and started mowing down cars and ramming buses.
He killed three people and wounded dozens more before security personnel climbed on the vehicle and killed him.
Three Palestinian militant groups claimed responsibility for the attack although the Israeli authorities say they believed Dwayat acted alone and was not a member of any group.
Correspondents said Dwayat's home in east Jerusalem showed no sign of the crowds and banners that normally accompany the funerals of Palestinian militants.
Palestinian civil rights activist Hassib Nashashibi said Dwayat had received a heavy fine and demolition order from the Israeli authorities for carrying out illegal building work, which may have provided a motivation.
Other reports say the the father-of-two - a devout Muslim married to a Palestinian woman - may have been seeking revenge for experiences in the past including a failed love affair with a Jewish Israeli woman and a spell in prison.
"Everyone is in shock," said a family friend.
Baby thrown clear
Medics said he killed two women and a man and injured more than 45 people as he drove about 200m along the busy Jaffa Road, one of west Jerusalem's main thoroughfares.
The baby of one of the dead women survived and was found under the seat of an overturned bus.
The attack took place in a busy area with a large ultra-Orthodox community
Another woman threw her baby out of her car window when she saw the 20-tonne construction vehicle bearing down on her. She was injured but her baby was unharmed.
Correspondents say the attack has put extra strain on the uneasy coexistence between the city's Jews and their Arab neighbours, many of whom work in the construction industry.
The Palestinian Authority condemned the attack, but the Hamas group, which controls the Gaza Strip said it was a "natural reaction to the aggression and crimes" of the Israeli occupation.
"Those who refuse to condemn this act of terror are exposing themselves for what they really are - namely the enemies of fundamental human values," said Israeli government spokesman Mark Regev.
Apart from a gun attack in March, Jerusalem has seen relatively little violence in the last three years.
Since the start of 2008, across Israel and the occupied territories, 29 Israelis have been killed in violence linked to the conflict as have more than 400 Palestinians.
1. Palestinian man driving a bulldozer begins his rampage down Jaffa Road in West Jerusalem, hitting several vehicles.
2. Travelling towards the Mahane Yehuda market, he rams a passenger bus several times before it overturns.
3. The bulldozer is eventually brought to a halt after the driver is shot following a struggle in the cab. At least three people are killed and dozens injured, some of them seriously.