Okay kiddo, have you ever played in a sandbox at the playground? You know how when you pour water into the sandbox, the sand gets all muddy and icky? Well, imagine if you didn't want the water to be muddy anymore - you would need to get rid of all the sand and dirt, right?
That's kind of what a settling basin is! It's like a big sandbox, but for water. When we have dirty water, like from a river or a creek, we put it into the settling basin. The water sits there for a while, and all the big stuff - like mud, sand, and rocks - sinks to the bottom of the basin.
After some time, the water is nice and clear, and all the big stuff is at the bottom. We can then take clean water out of the top of the basin and use it for things like drinking, washing, or watering plants.
So, a settling basin is just a big sandbox where dirty water goes to get cleaned up by sinking dirt and sediment to the bottom. Simple, right?