Describes people from here, being at liberty to say this name is no longer in use (5,4,5)

'describes people from here being at liberty to say this name is no longer in use' is the definition.
The answer is a location as well as being a singular noun. This is suggested by the definition.

'describes people from here being at liberty to say this name' is the wordplay.
I cannot quite see how this works, but
'people' could be 'state' (as in the people of a nation) and 'state' is present in the answer.
'from' could be 'fr' (abbreviation) and 'fr' is located in the answer.
'name' could be 'iris' and 'iris' is found within the answer.
The remaining letters 'hee' is a valid word which might be clued in a way I don't understand.
This explanation may well be incorrect...

Can you help me to learn more?