Country lake and peninsula (7)
I believe the answer is:
'country' is the definition.
(Liberia is an example)
'lake and peninsula' is the wordplay.
'lake' becomes 'l' (geographical abbreviation).
'and' is a charade indicator (letters next to each other).
'peninsula' becomes 'iberia' (Iberia is an example).
(Other definitions for liberia that I've seen before include "State", "part of Africa", "African country, established by the US in 1822", "W. African nation", "West African country founded for freed slaves".)