Experimental studies showed that the transition from the last quantum Hall plateau in the integer quantum Hall effect
terminates with a unique insulating phase. This phase is characterized by the divergent of the longitudinal resistivity
with decreasing temperature, while the Hall resistivity remains quantized to its value in the last plateau. This is in  
contradiction to the predictions of the non-interacting electron theory. Therefore, it was suggested that this quantum  
Hall Insulator phase may be related to incoherent scattering events. We show that by including rare incoherent  
scattering events the quantum Hall insulator becomes a stable phase. The theory predicts a non-monotonic dependence  
of the Hall resistance on system size.