Drink with Joe over the way (3)
I believe the answer is:
gin
'drink' is the definition.
(gin is a kind of drink)
'joe over the way' is the wordplay.
'joe' becomes 'gi' (GI Joe).
'over' is a charade indicator (letters next to each other).
'the way' becomes 'n' (Compass direction - North**).
'gi'+'n'='GIN'
'with' is the link.
(Other definitions for gin that I've seen before include "Spirit; cotton machine" , "Machine for separating cotton from its seeds" , "Colourless spirit flavoured with juniper berries - mother's ruin" , "Spirit drink" , "Spirit; trap" .)