A fair on fire (6)
I believe the answer is:
alight
'on fire' is the definition.
(I know that on fire can be written as alight)
'a fair' is the wordplay.
'fair' becomes 'light' (as in fair hair).
'a'+'light'='ALIGHT'
(Other definitions for alight that I've seen before include "Descend, from a bus or train say" , "Touch down" , "Get down from, bus or plane" , "Get down from, say bus" , "Descend from vehicle" .)