Comes back on steamship going round small lake (8)
I believe the answer is:
responds
'comes back' is the definition.
'on steamship going round small lake' is the wordplay.
'on' becomes 're' ('on' can be mean 'with reference to').
'steamship' becomes 'ss'.
'going round' indicates putting letters inside.
'small lake' becomes 'pond' (I've seen this before).
'ss' going around 'pond' is 'sponds'.
're'+'sponds'='RESPONDS'
(Other definitions for responds that I've seen before include "Reacts or replies" , "Answers or reacts" .)