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To have a community in terms of a town, you must have a group of people who agree to live near each other under the same rules and for the good of all. So a piece of land is not a community, nor is it settled. A group comes to that piece of land, agree they like it there, and build houses. To settle is to stop moving, to stay at one place or decision (even if it lacks all your needs or wishes). So a settled community consists of a group of people who agreed to stop moving, to settle into the space, and make it their home.

Conversely, think about a once settled community. The people stayed a while. So it was a settled community. But they decided they wanted to move. The land wouldn't grow crops; it rained too much; there were landslides; there was no other close town so no neighbors to trade with. So they abandoned their houses and moved on. The piece of land is no longer settled; it no longer has any community there. But 5 years later, a group is migrating across a country. They come upon the abandoned houses. They decide they can fix up the buildings and decide to stay. The group of 200 people move into the town, some building new houses. This group decided to mine for gold. So they traded their gold for food. They dug a dam to hold excess rainwater and planted trees on hills to avoid mudslides. They worked to make the soil more fertile. Once again, there is a settled community.

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