Circle lake bed first (7)
I believe the answer is:
coterie
'circle' is the definition.
(I know that coterie is a type of circle)
'lake bed first' is the wordplay.
'lake' becomes 'erie' (Lake Erie is one of the Canadian/US 'Great Lakes').
'bed' becomes 'cot' (cot is a kind of bed).
'first' says to put letters next to each other.
'erie' after 'cot' is 'COTERIE'.
(Other definitions for coterie that I've seen before include "Set" , "Small exclusive group of friends" , "Select group" , "Exclusive social circle" , "Group, band" .)