City road going around a garden bears south (7)
I believe the answer is:
dresden
'city' is the definition.
(Dresden is an example)
'road going around a garden bears south' is the wordplay.
'road' becomes 'rd' (abbreviation).
'going around' is a reversal indicator.
'a garden' becomes 'eden' (Garden of Eden in the Bible).
'bears' indicates putting letters inside (some letters carry or bear others).
'south' becomes 's' (abbreviation).
'rd' written backwards gives 'dr'.
'eden' placed around 's' is 'esden'.
'dr'+'esden'='DRESDEN'
(Other definitions for dresden that I've seen before include "German city known for its china" , "'German city, almost totally destroyed by British air raids in 1945 (7)'" , "Famous china made at Meissen" , "German city, noted for its porcelain" , "source of 26 [CHINA]" .)