This setting dictates how the database's collation is handled during deployment; there are three possible values. UseSourceModelCollation ...

This setting dictates how the database's collation is handled during deployment; there are three possible values.  UseSourceModelCollation indicates that the target database's collation will be updated if it does not match the collation specified by the source.  UseTargetModelCollation indicates that the target database's (or server's) collation should be used.