Country lake and peninsula (7)
I believe the answer is:
liberia
'country' is the definition.
(Liberia is an example)
'lake and peninsula' is the wordplay.
'lake' becomes 'l' (geographical abbreviation).
'and' is a charade indicator (letters next to each other).
'peninsula' becomes 'iberia' (Iberia is an example).
'l'+'iberia'='LIBERIA'
(Other definitions for liberia that I've seen before include "African republic, capital Monrovia" , "West African country founded for freed slaves" , "West African country, capital Monrovia" , "One of the African nations" , "Monrovia's country" .)