Enclosed area (8)
(Other definitions for compound that I've seen before include "Kind of interest accumulating on capital plus interest" , "Chemical substance; enclosed space" , "Exacerbate; pen" , "fenced area in prison" , "See 10" .)
'enclosed area' is the definition.
(I've seen this before)
This is the entire clue.
(Other definitions for precinct that I've seen before include "Town shopping area" , "Enclosed space around a building" , "Ward" , "District of authority" , "Enclosed area round, eg, a cathedral" .)