Drink with Joe over the way (3)
I believe the answer is:
gin
'drink' is the definition.
(gin is an alcoholic drink)
'joe over the way' is the wordplay.
'joe' becomes 'GI' (GI Joe).
'over' says to put letters next to each other (in a down clue, some letters go over others).
'the way' becomes 'n' (Compass direction - North).
'gi'+'n'='GIN'
'with' is the link.
(Other definitions for gin that I've seen before include "Spirit; cotton machine" , "Machine for separating cotton from its seeds" , "Colourless spirit flavoured with juniper berries - mother's ruin" , "Spirit drink" , "Spirit; trap" .)