Live in, occupy (7)
I believe the answer is:
inhabit
This clue is a double definition.
'live in' is the first definition.
(to inhabit a place is to live in it)
'occupy' is the second definition.
(I know that occupy is a kind of inhabit)
(Other definitions for inhabit that I've seen before include "Dwell in" , "Tenant" , "Occupy - settle" , "Live in (a place)" , "Occupy (dwelling)" .)