Clean clothes in city below (7)
I believe the answer is:
launder
'clean clothes' is the definition.
(I've seen this before)
'city below' is the wordplay.
'city' becomes 'LA' (Los Angeles).
'below' becomes 'under' (synonyms).
'la'+'under'='LAUNDER'
'in' is the link.
(Other definitions for launder that I've seen before include "Perhaps decriminalise" , "Wash, starch and iron" , "Wash and iron clothes etc" , "Make clean, clothing or money" , "Clean, clothes or mafia money" .)