The most common and most likely answer to this crossword clue is the 8 letter word HOMETOWN
I've seen this crossword clue in The Times
H
O
M
E
T
O
W
N
Buddy explains!
The straight part
We know that "native settlement" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case native settlement = hometown.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does HOMETOWN mean?
HOMETOWN noun- An individual’s place of birth, childhood home, or place of main residence.
- Designating a decision or judgement that is biased, or perceived to be biased, in favour of local preference.