Crouch, as in the way (5)
I believe the answer is:
squat
'crouch' is the definition.
(I know that crouch can be written as squat)
'as in the way' is the wordplay.
'as' becomes 'qua' ('qua' is a Latin term meaning 'in the capacity of').
'in the' means one lot of letters goes inside another.
'way' becomes 'st' (abbreviation for street).
'qua' placed inside 'st' is 'SQUAT'.
(Other definitions for squat that I've seen before include "Refuse to move on" , "hunch" , "Illegal occupation of building" , "Crouch - occupy a property" , "Short and dumpy; occupy building" .)