Drink up, embracing one working in local (8)
I believe the answer is:
regional
'local' is the definition.
(in a particular region)
'drink up embracing one working' is the wordplay.
'drink' becomes 'lager' (lager is a kind of drink).
'up' says the letters should be written backwards (in down clue: letters go upwards).
'embracing' is an insertion indicator.
'one' becomes 'i' (Roman numeral).
'working' becomes 'on' (on can mean working or activated).
'lager' backwards is 'regal'.
'i'+'on'='ion'
'regal' enclosing 'ion' is 'REGIONAL'.
'in' acts as a link.
(Other definitions for regional that I've seen before include "From a geographical area" , "Relating to local area" , "outside the capital" , "Territorial" , "Like some food" .)