City of wet streets (6)

I believe the answer is:

venice

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'city' is the definition.
(Venice is an example)

I don't understand the rest of the clue.

(Other definitions for venice that I've seen before include "City of gondoliers" , "City of 15 acrosses" , "City and former republic in NE Italy" , "Grand Canal city" , "Italian source" .)

I've seen this clue in the Evening Standard.

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