Ice does melt, see! (7)
I believe the answer is:
diocese
'see' is the definition.
(thesaurus)
'ice does melt' is the wordplay.
'melt' indicates anagramming the letters.
'ice'+'does'='icedoes'
'icedoes' anagrammed gives 'DIOCESE'.
(Other definitions for diocese that I've seen before include "Ecclesiastical see" , "Bishop's region" , "I see cod (anag)" , "Bishop's responsibility" , "Jurisdiction of a bishop" .)