The dispersive sweep of fast radio bursts (FRBs) has been used to probe the ionized baryon content of the intergalactic medium1, which is assumed to dominate the total extragalactic dispersion. Although the host-galaxy contributions to the dispersion measure appear to be small for most FRBs2, in at least one case there is evidence for an extreme magneto-ionic local environment3,4 and a compact persistent radio source5. Here we report the detection and localization of the repeating FRB 20190520B, which is co-located with a compact, persistent radio source and associated with a dwarf host galaxy of high specific-star-formation rate at a redshift of 0.241 ± 0.001. The estimated host-galaxy dispersion measure of approximately $${903}_{-111}^{+72}$$ 903 − 111 + 72 parsecs per cubic centimetre, which is nearly an order of magnitude higher than the average of FRB host galaxies2,6, far exceeds the dispersion-measure contribution of the intergalactic medium. Caution is thus warranted in inferring redshifts for FRBs without accurate host-galaxy identifications.

The polarization of fast radio bursts (FRBs), which are bright astronomical transient phenomena, contains information about their environments. Using wide-band observations with two telescopes, we report polarization measurements of five repeating FRBs and find a trend of lower polarization at lower frequencies. This behavior is modeled as multipath scattering, characterized by a single parameter, σ RM , the rotation measure (RM) scatter. Sources with higher σ RM have higher RM magnitude and scattering time scales. The two sources with the highest σ RM , FRB 20121102A and FRB 20190520B, are associated with compact persistent radio sources. These properties indicate a complex environment near the repeating FRBs, such as a supernova remnant or a pulsar wind nebula, consistent with their having arisen from young stellar populations.