Demolished an empty settlement (7)
I believe the answer is:
payment
'settlement' is the definition.
(I've seen this before)
'demolished an empty' is the wordplay.
'demolished' is an anagram indicator.
'an'+'empty'='anempty'
'anempty' anagrammed gives 'PAYMENT'.
(Other definitions for payment that I've seen before include "Money given for service etc." , "Money handed over for purchase" , "Money (for goods)" , "Discharge of debt" , "Handing over money" .)