Dreadful setter in the way (6)
I believe the answer is:
street
'the way' is the definition.
(street is a kind of way)
'dreadful setter' is the wordplay.
'dreadful' is an anagram indicator.
'setter' with letters rearranged gives 'STREET'.
'in' is the link.
(Other definitions for street that I've seen before include "Perry's Della" , "Urban thoroughfare" , "Roadway" , "Tester (anag.)" , "Form of theatre" .)