Dingy loos set up in Spitzbergen (8)

'spitzbergen' is the definition.
(I know that spitzbergen can be written as Svalbard)

'dingy loos set up' is the wordplay.
'dingy' becomes 'drab' (both can mean gloomy or dark).
'loos' becomes 'lavs' (I've seen this in another clue).
'set up' is a reversal indicator (in a down clue, letters go up).
'drab'+'lavs'='drablavs'
'drablavs' reversed gives 'SVALBARD'.

'in' is the link.