Kate understands why Prince William doesn't want Pippa Middleton to move into their Kensington Palace cottage
She embarrassed Kate, 30, by attending a fancy dress party in Paris where a stripper jumped out of a cake to God Save The Queen.
Then the next day she was caught smirking as friend Romain Rabillard apparently pointed a gun at paparazzi.
But the sisters called a truce three weeks ago on the advice of Wills and Prince Harry.
Pippa - who's just reunited with banker ex Alex Loudon - agreed to follow a set of rules laid down by Buckingham Palace to curb her partying.
But when Kate suggested moving Pippa into Nottingham Cottage, her and Wills' two-bedroom home in the grounds of Kensington Palace, Prince William, 30, put his foot down.
Our source says: 'Kate was disappointed, but she understood what Wills was saying.'
Read more on Kate Middleton's relationship with sister Pippa in Now magazine dated 30 July 2012 - out now!