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Yes, settlement is a Scrabble word!
...and is worth 12 points in Scrabble, and 15 points in Words with Friends
1. A body of people who settle far from home but maintain ties with their homeland; inhabitants remain nationals of their home state but are not literally under the home state's system of government
2. A community of people smaller than a town
3. A conclusive resolution of a matter and disposition of it
4. The act of colonizing; the establishment of colonies
5. Something settled or resolved; the outcome of decision making
6. An area where a group of families live together
7. Termination of a business operation by using its assets to discharge its liabilities
What Scrabble words can I make with the letters in settlement?
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