Sentence:  As these Swiss were moving from the Selkirk <WSD>settlement</WSD> to become the first civilian residents of Minnesota , Dousman of Michilimackinac , Michigan , and Prairie du Chien was traveling to Red River to open a trade in merchandise . 
Meaning of the word marked with <WSD> tags:  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