City making smart Edam? (9)
I believe the answer is:
amsterdam
'city' is the definition.
(Amsterdam is an example)
'making smart edam?' is the wordplay.
'making' indicates anagramming the letters.
'smart'+'edam'='smartedam'
'smartedam' is an anagram of 'AMSTERDAM'.
(Other definitions for amsterdam that I've seen before include "Western European city, a major diamond centre" , "City of the Rijks-museum and Van Gogh Museum" , "Dutch port" , "place of canals" , "City known for canals" .)