What Is A Setting?

Settings are what truly make an RPG great. I have played many RPGs with difficult or less than thrilling mechanics that were still incredible fun because of the settings. I have also played RPGs with very interesting mechanics but the games were as memorable as bland oatmeal because the settings were unremarkable.

With the Budge framework nearly finished, or I should say nearly ready for its first public appearance, I am preparing to switch modes to start developing settings for use with Budge. This has me thinking about what a setting actually is? A cast of important NPCs and locations? A cosmology that defines how the game world came to be and how it works? Or is it a bit of mechanics that tie the system into the setting such as humanity in Vampire: The Masquerade 1st and 2nd editions (I stopped playing after those versions were released and have no idea if that mechanic exists anymore)?

The answer is probably all of them, but there are probably many more. What do others think? What makes a setting? What would you expect from a setting that you paid for? Leave a comment below and let me know what you define a setting to be.