Dispute in street about parking area (4)
I believe the answer is:
spat
'dispute' is the definition.
(spatting is a kind of disputing)
'street about parking area' is the wordplay.
'street' becomes 'st' (abbreviation).
'about' indicates putting letters inside.
'parking' becomes 'p' (abbreviation on road signs).
'area' becomes 'a' (maths abbreviation).
'p'+'a'='pa'
'st' enclosing 'pa' is 'SPAT'.
'in' acts as a link.
(Other definitions for spat that I've seen before include "Petty quarrel or fight" , "Old-fashioned legwear" , "Made gesture of contempt" , "Short gaiter or slight quarrel (4)" , "angry words" .)