What does the cryptic crossword clue "Settlement that obviously wasn't negotiated, initially (4)" mean?

The definition is "Settlement". The wordplay uses a charade (building blocks). T (first_letter="that") + O (first_letter="obviously") + W (first_letter="wasn't") + N (first_letter="negotiated,") = TOWN; definition: "Settlement" The answer is Town.

Settlement that obviously wasn't negotiated, initially (4)

Telegraph Prize Cryptic #3092 | 24 Down | 2021-01-24 flower

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