Crossword Genius

Penny turning blue at old American Indian village (6)

Ross

I believe the answer is:

pueblo

'american indian village' is the definition.
(I've seen this before)

'penny turning blue at old' is the wordplay.
'penny' becomes 'p' (**).
'turning' indicates an anagram.
'at' means one lot of letters go next to another.
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'blue'+'o'='blueo'
'blueo' anagrammed gives 'ueblo'.
'p'+'ueblo'='PUEBLO'

(Other definitions for pueblo that I've seen before include "Latin American village" , "Town in Spanish-speaking countries" , "Navajo, eg" , "Old communal village in Mexico or Spanish America" , "Mexican settlement" .)

I've seen this clue in The Telegraph.
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