Dressed crab near Australian city (8)
I believe the answer is:
canberra
'australian city' is the definition.
(I've seen this before)
'dressed crab near' is the wordplay.
'dressed' is an anagram indicator ('dress' can mean 'prepare').
'crab'+'near'='crabnear'
'crabnear' is an anagram of 'CANBERRA'.
(Other definitions for canberra that I've seen before include "Australian federal capital" , "Ban carer from this city" , "Strange crab near Australia" , "Australian city" , "Australian capital - famous liner" .)