District houses new stadium (5)

I believe the answer is:

arena

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'stadium' is the definition.
(eg a sports arena)

I can't explain the rest of the clue.

(Other definitions for arena that I've seen before include "Sporting enclosure" , "Central area in sports stadium" , "combat zone" , "Where one may find sportsmen" , "bowl? Possibly" .)

I've seen this clue in The Sun.

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