Canal site (6)
I believe the answer is:
panama
'canal site' is the definition.
(I've seen this in another clue)
This is all the clue.
(Other definitions for panama that I've seen before include "Country and straw hat" , "country divided by boaters?" , "A great canal or a straw hat" , "isthmus" , "'Country, canal and hat (6)'" .)