Stop a letter giving settlement (6)
I believe the answer is:
colony
'settlement' is the definition.
(I know that settlement can be written as colony)
'stop a letter' is the wordplay.
I cannot really understand how this works, but
'letter' could be 'y' (Y is a letter of the alphabet) and 'y' is found in the answer.
The remaining letters 'colon' is a valid word which might be clued in a way I don't understand.
This may be the basis of the clue (or it may be nonsense).
'giving' acts as a link.
Can you help me to learn more?
(Other definitions for colony that I've seen before include "Overseas settlement" , "Group of organisms of the same type living together" , "New settlement abroad" , "Dependent settlement away from the homeland" , "Country controlled by another's settlers" .)