What does "he lives there" mean in English for Spanish?

In English for Spanish, "he lives there" means:

él vive ahí

Listen to "he lives there": (If you have an HTML5 enabled browser, you can listen to the native audio below)

This is a phrase that is used in the GamesForLanguage English for Spanish Language Game in the following scenes:

• English for Spanish 3, Level 3, Scene 11