Area DI observing rules very closely (8)
I believe the answer is:
district
'area' is the definition.
(thesaurus)
'di observing rules very closely' is the wordplay.
'observing rules very closely' becomes 'strict' (I've seen this before).
'di'+'strict'='DISTRICT'
(Other definitions for district that I've seen before include "Zone, area" , "Precinct, section" , "A quarter" , "Territorial division" , "Area, region" .)