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The Settlement is where the Caravaners came after escaping from Neo Arcadia in Mega Man Zero 4. It is located near Area Zero, where nature has begun to return in the region. It is both part of the hub area and the first intermission stage of the game.
As a stage
Settlement (also called Area Zero Camp in some sources) is the first intermission stage in Mega Man Zero 4. After four of the eight Einherjar are defeated, Craft issues an attack on the camp to search for Neige.