An Irish town can include an avenue (5)
I believe the answer is:
cavan
'an irish town' is the definition.
(I've seen this before)
'can include an avenue' is the wordplay.
'include' means one lot of letters goes inside another.
'an avenue' becomes 'av' (short for avenue).
'can' placed around 'av' is 'CAVAN'.
(Another definition for cavan that I've seen is " Irish town".)
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