How is this card played and where is it placed?
After setting up the Dream, take all Residents note cards from your Storage.
See if there are any spaces with names mentioned on their cards – if there are, place those Residents next to those spaces (not on the Map tiles, though). Residents are placed like there so that you may find them easily – they are not a part of the Dreamscape.
When a Dreamer is in the space mentioned on the Resident card, you may resolve the effect written on this Resident card.