Clad as Punjabi, welcoming ruler between cities (10)

I believe the answer is:

interurban

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'clad as punjabi welcoming ruler' is the definition.
I can't tell whether this definition defines the answer.

'between cities' is the wordplay.
'between' becomes 'inter'.
'cities' becomes 'urban' (I can't explain this - if you can you should believe this answer much more).
'inter'+'urban'='INTERURBAN'

Can you help me to learn more?

(Another definition for interurban that I've seen is " between Leeds and Manchester?".)

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