Alternatively sited in branch town (7)
I believe the answer is:
borough
'town' is the definition.
(I know that borough is a type of town)
'alternatively sited in branch' is the wordplay.
I cannot quite see how this works, but
'alternatively' could be 'or' and 'or' is found in the answer.
'branch' could be 'bough' (bough is a kind of branch) and 'bough' is present in the leftover letters.
No letters remain.
This explanation may well be incorrect...
Can you help me to learn more?
(Other definitions for borough that I've seen before include "Administrative division of a large city" , "Local district" , "Region of London" , "6D 5A [TUBE STATION]" , "Administrative unit in a city, Dun Laoghaire in Dublin, say" .)