Enclosed territory (7)
I believe the answer is:
enclave
'enclosed territory' is the definition.
(I've seen this before)
This is all the clue.
(Other definitions for enclave that I've seen before include "Small territory owned by one state but lying within another" , "Small territory completely surrounded by another one" , "pocket" , "Isolated cultural group" , "Cultural group embedded in a larger one" .)