A tip for anyone planning to buy themself a nargila/hookah - look for one with an unscrewable shaft. This makes both transporting and cleaning far far easier. Also, as with anything, if you are getting it in a market the smaller shops will always have the best deals.
For anyone looking for a nargila in Israel, try and make it to Dalyat-Al-Karmel near Haifa, where I found nargilot for around half the price of those in the Christian market in Jerusalem.