Fixed fencing around reservoir that's chipped (6)

I believe the answer is:

flaked

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'chipped' is the definition.
(flaking is a kind of chipping)

'fixed fencing around reservoir' is the wordplay.
'fixed fencing' becomes 'fd' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'around' is an insertion indicator.
'reservoir' becomes 'lake' (I've seen this before).
'fd' placed around 'lake' is 'FLAKED'.

'that's' is the link.

Can you help me to learn more?

I've seen this clue in The Irish Times.

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