Lived with the Spanish in outskirts of Detroit (5)
I believe the answer is:
dwelt
'lived' is the definition.
(I've seen this before)
'with the spanish in outskirts of detroit' is the wordplay.
'with' becomes 'w' (abbreviation).
'the spanish' becomes 'el' ('the' in Spanish).
'in' means one lot of letters goes inside another.
'outskirts of' says to hollow out the word (remove centre letters) (only letters on the outskirts).
'detroit' with its middle removed is 'dt'.
'w'+'el'='wel'
'wel' inserted into 'dt' is 'DWELT'.
(Other definitions for dwelt that I've seen before include "lodged" , "hung out" , "Inhabited" , "Lived, resided" , "Lived in, musically in marbe halls" .)