I have, lets say, something like a homework or assignment to do. Roughly said I need to write an algorithm (pseudo code is not necessary, just in depth description) of procedure that would generate settlements, environment and a people to populate it with, as part of some larger world generation procedure. The genre of game is not specified, it could be any genre (rpg, strategy, colony simulation etc.) where interacting with large and extensive world is central to the game.

Procedure should be called once per settlement. At the time of calling, world generation procedure makes geography, culture and history input available. Output should be map of the village and it's immediate area, and various potential additional information like myths, history, demographic facts etc. Bonus would be quest ant similar stuff, but that not really my focus at the moment.

I will leave quality of the output for later when I actually dig little deeper into this topic.

I am free to change parameters as long as I have strong explanation for doing so. Setting of the game is undetermined so I am free to use anything that I like the most.

Ok, so my actual question is: Can anyone who has some experience in this field of game design recommend me some good literature, or point me in the direction where I should look/reed/study? I'm somewhat experienced game programmer, but I've never been into game design till now so any help will be great. I want to do this assignment as good as I can.

As for deadline, it's not strictly set, but lets say I don't want it to take longer then few weeks, one month at worst case.