Drinking with cryptic setter in capital location (7,6)
I believe the answer is:
downing street
'capital location' is the definition.
(location in London, the UK capital)
'drinking with cryptic setter' is the wordplay.
'drinking' becomes 'downing' (as in downing a drink).
'with' says to put letters next to each other.
'cryptic' is an anagram indicator (a cryptic or obscure order of the letters).
'setter' with letters rearranged gives 'street'.
'downing'+'street'='DOWNING STREET'
'in' is the link.
(Other definitions for downing street that I've seen before include "No 10's location" , "important address" , "The (British) government" , "gated community?" , "PM's home" .)