The Collaborative International Dictionary of English v.0.48:

shtetl \shtetl\ (sht[e^]t"'l); pl. Eng. shtetls
   (sht[e^]t"'lz), Yiddish shtetlach (sht[e^]t"l[aum]kh)., n.
   [Yiddish, from MHG stetel, dim. of stat, place, town.]
   A village or small town; -- usually referring to Jewish towns
   in Eastern Europe.
   [PJC] shtick