A native overlooking a lake that's private (8)
I believe the answer is:
personal
'private' is the definition.
('personal' is associated in meaning with 'private')
'a native overlooking a lake' is the wordplay.
'a' becomes 'per'.
'native' becomes 'son' (I've seen this before).
'overlooking' says to put letters next to each other (down clues only).
'lake' becomes 'l'.
'per'+'son'+'a'+'l'='PERSONAL'
'that's' acts as a link.
(Other definitions for personal that I've seen before include "Individual; advert (column)" , "Distinctive; individual" , "Relating to the individual" , "Concerning oneself" , "Of one's private life - nobody else's business" .)