Colony makes compromise (10)
I believe the answer is:
settlement
This clue is a double definition.
'colony' is the first definition.
(I know that colony can be written as settlement)
'compromise' is the second definition.
(thesaurus)
'makes' is the link.
(Other definitions for settlement that I've seen before include "Dispute-resolving agreement" , "Colony - discharge of debt" , "local community" , "charge paid off with this" , "deal" .)