A US state limited district with a different one (7)

I believe the answer is:

arizona

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'a us state' is the definition.
(state of the USA)

I don't understand the rest of the clue.

(Other definitions for arizona that I've seen before include "Dry US state" , "State represented by Senators Barry Goldwater and John McCain" , "American state, capital Phoenix" , "somewhere in America" , "Site of Grand Canyon" .)

I've seen this clue in The Telegraph.

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