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From: Webster's Revised Unabridged Dictionary (1913)

 Squat·ter n.
 1. One who squats; specifically, one who settles unlawfully upon land without a title.  In the United States and Australia the term is sometimes applied also to a person who settles lawfully upon government land under legal permission and restrictions, before acquiring title.
    In such a tract, squatters and trespassers were tolerated to an extent now unknown.   --Macaulay.
 2. Zool. See Squat snipe, under Squat.
 Squatter sovereignty, the right claimed by the squatters, or actual residents, of a Territory of the United States to make their own laws. [Local, U.S.] --Bartlett.