You can only build Allied governments in regions that do not have Nomadism as an option i.e. no "nomad" or "mixed" hidden resource, here are maps showing nomad and mixed hidden resource locations. Indigenous settlements is the name of the military occupation building for the Saka. If you build "Indigenous Settlements" anywhere that there is no nomad or mixed hidden resource, you will be able to build the Allied Gov't there next turn.
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