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In modern times, a combination of the character for tree and the character for hand/measure; however the modern day character is the result of some ancient confusion.
The original character meaning village was really a combination of the radicals for metropolis and encampment. Another character which was a combination of tree and encampment meaning lacquer tree was sometimes used as a phonetic substitute. Gradually, this later character took over to mean village and became simplified to its present form.