European peninsula having its air polluted (6)

I believe the answer is:

istria

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'european peninsula' is the definition.
The definition suggests a singular noun which matches the answer.

'its air polluted' is the wordplay.
'polluted' indicates anagramming the letters.
'its'+'air'='itsair'
'itsair' is an anagram of 'ISTRIA'.

'having' is the link.

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I've seen this clue in The Guardian.

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