The Collaborative International Dictionary of English v.0.48:

Squat \Squat\, v. i. [imp. & p. p. Squatted; p. pr. & vb. n.
   Squatting.] [OE. squatten to crush, OF. esquater, esquatir
   (cf. It. quatto squat, cowering), perhaps fr. L. ex +
   coactus, p. p. of cogere to drive or urge together. See
   Cogent, Squash, v. t.]
   1. To sit down upon the hams or heels; as, the savages
      squatted near the fire.
      [1913 Webster]

   2. To sit close to the ground; to cower; to stoop, or lie
      close, to escape observation, as a partridge or rabbit.
      [1913 Webster]

   3. To settle on another's land without title; also, to settle
      on common or public lands.
      [1913 Webster]

WordNet (r) 3.0 (2006):

squatting
    n 1: exercising by repeatedly assuming a crouching position with
         the knees bent; strengthens the leg muscles [syn: knee
         bend, squat, squatting]
    2: the act of assuming or maintaining a crouching position with
       the knees bent and the buttocks near the heels [syn: squat,
       squatting]

Moby Thesaurus II by Grady Ward, 1.0:

81 Moby Thesaurus words for "squatting":
   abiding, abode, adverse possession, alodium, burgage, claim,
   cohabitation, colony, commorancy, de facto, de jure, dependency,
   derivative title, dwelling, fee fief, fee position, fee simple,
   fee simple absolute, fee simple conditional, fee simple defeasible,
   fee simple determinable, fee tail, feodum, feud, fiefdom,
   frankalmoign, free socage, freehold, gavelkind, habitancy,
   habitation, having title to, hold, holding, inhabitancy,
   inhabitation, inhabiting, knight service, lay fee, lease,
   leasehold, legal claim, legal possession, living, lodging, mandate,
   nesting, occupancy, occupation, original title, owning, possessing,
   possession, preoccupancy, preoccupation, prepossession,
   prescription, property, property rights, proprietary rights,
   residence, residency, residing, seisin, socage, sojourning,
   staying, staying over, stopping, sublease, tenancy, tenantry,
   tenure, tenure in chivalry, title, underlease, undertenancy,
   usucapion, villein socage, villeinhold, villenage