Crane in March one to observe circling lakes (10)
I believe the answer is:
demoiselle
'crane' is the definition.
(demoiselle is a species of crane)
'march one to observe circling lakes' is the wordplay.
'march' becomes 'demo' (as in a demonstration).
'one' becomes 'i' (Roman numeral).
'to observe' becomes 'see' (I've seen this before).
'circling' means one lot of letters goes inside another (circling can mean going around or containing).
'lakes' becomes 'LL' (L is an abbreviation for lake).
'see' placed around 'll' is 'selle'.
'demo'+'i'+'selle'='DEMOISELLE'
'in' acts as a link.
(Another definition for demoiselle that I've seen is " Young woman (archaic)".)