settlement vs community

settlement and community both are nouns.

Word	Noun	Adjective	Verb	Adverb
settlement	Yes	No	No	No
community	Yes	No	No	No

As nouns, community is a hypernym of settlement; that is, community is a word with a broader meaning than settlement:

settlement (noun)	community (noun)
termination of a business operation by using its assets to discharge its liabilities	a group of people living in a particular local area
the act of colonizing; the establishment of colonies	(ecology) a group of interdependent organisms inhabiting the same region and interacting with each other
something settled or resolved; the outcome of decision making	a group of people having a religion, ethnic, profession, or other particular characteristic in common
a conclusive resolution of a matter and disposition of it	a group of nations having common interests
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	a district where people live; occupied primarily by private residences
a community of people smaller than a town	common ownership
an area where a group of families live together	agreement as to goals