Small settlement, a tragedy (6)
I believe the answer is:
hamlet
This clue is a double definition.
'small settlement' is the first definition.
(I've seen this before)
'a tragedy' is the second definition.
(I've seen this before)
(Other definitions for hamlet that I've seen before include "whose forefathers were rude, did Gray imply?" , "tragic role" , "Danish king in play" , "Tragic figure" , "The Prince of Denmark's little village" .)