Surrounded by water, it reaches land (7)
I believe the answer is:
eritrea
'land' is the definition.
(African country)
'surrounded by water it reaches' is the wordplay.
'surrounded by' says the answer is hidden in the clue.
'ERITREA' is hidden in the letters of 'water it reaches'.
(Other definitions for eritrea that I've seen before include "nation" , "Northeast African country" , "It became independent of Ethiopia in 1993" , "It declared its independence from Ethiopia in 1993" , "River forming part of German-Polish border" .)