Crossword Genius

Area around old lake on river's like a ring of colour (7)

Ross

I believe the answer is:

areolar

I'm a little stuck... Click here to teach me more about this clue!

'ring of colour' is the definition.
Although both the answer and definition are adjectives, I can't understand how one could define the other.

'area around old lake on river's' is the wordplay.
'around' indicates putting letters inside.
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'lake' becomes 'L' (geographical abbreviation).
'on' is a charade indicator (letters next to each other).
'river' becomes 'r' (abbreviation).
'o'+'l'='ol'
'area' going around 'ol' is 'areola'.
'areola'+'r'='AREOLAR'

'like a' is the link.

Can you help me to learn more?

(Other definitions for areolar that I've seen before include "of circular area" , "about a pupil" .)

I've seen this clue in the Sydney Morning Herald.
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