I started a above-ground settlement in the middle of a large island. Lots of trees but there is aquifer but the settlement is in a temperate zone so I have started to large hole(quarry) so when winter comes I can dig deeper, pulling up wooden walls about the stairway.
The settlement has some farming underground plus the warehouses, catacombs, and the lone temple. Everything is on the surface or in a slowly growing tower. I also walled off a part, making a large courtyard. There is a ditch around some of it - which has partly filled up with water. Already have two dorms, a tavern, one office, working on a well, a pig pastures, two turkey pastures, a barracks, a hospital and library. Started a clay industry also.
I missed the first caravan as my Trade Depot was not made yet and only had two small migrant waves. I think I may end up getting my own stone before the next caravan shows up. And if it does I will likely only trade for items I REALLY can't make myself. Like more animals or certain foods.
I brought some stone and copper and display cases and anvils with me, including a ton of seeds and weapons and such, so I already had a lot of items with me.
The history started in year ONE and the world gen was a pre-made one I copied to make hundreds of islands. I picked one that was a tad large, in a comfortable climate zone, and far away from anybody else. Kind of surprised any caravan showed up at all.
Lots of small ponds for fish, boars and deer, and fruit trees! Once I get access to stone and gems and ores my Dwarves will be truly happy.