Lived with the Spanish in outskirts of Detroit (5)
I believe the answer is:
dwelt
'lived' is the definition.
(I've seen this in another clue)
'with the spanish in outskirts of detroit' is the wordplay.
'with' becomes 'w' (short for with).
'the spanish' becomes 'el' ('the' in Spanish).
'in' is an insertion indicator.
'outskirts of' suggests removing the centre (only letters on the outskirts).
'detroit' with its centre taken out is 'dt'.
'w'+'el'='wel'
'wel' inserted into 'dt' is 'DWELT'.
(Other definitions for dwelt that I've seen before include "lodged" , "hung out" , "Inhabited" , "Lived, resided" , "Lived in, musically in marbe halls" .)