Paintings put up around grand Irish town (5)
I believe the answer is:
sligo
'irish town' is the definition.
(I've seen this before)
'paintings put up around grand' is the wordplay.
'paintings' becomes 'oils' (oil paintings).
'put up' is a reversal indicator.
'around' is an insertion indicator.
'grand' becomes 'g' (G is short for grand as in a thousand).
'oils' back-to-front is 'slio'.
'slio' enclosing 'g' is 'SLIGO'.
(Other definitions for sligo that I've seen before include "one of twenty-six" , "area by the sea" , "Irish seaport and county" , "County of NW Eire" , "Ir. town by Donegal bay" .)