In simpler term we can define settlement as any form of human habitation which ranges from a single dwelling to large city. The word settlement has another connotation as well as this is a process of opening up and settling of a previously uninhabited area by the people.
In geography this process is also known as occupancy. Therefore, we can say settlement is a process of grouping of people and acquiring of some territory to build houses as well as for their economic support.
Settlements can broadly be divided into two types - rural and urban.
Difference between rural and urban areas:
The major difference between rural and urban areas is the function. Rural areas have predominantly primary activities, whereas urban areas have domination of secondary and tertiary activities.
Generally the rural areas have low density of population than urban.