Governor entertains Queen in this place (4)
I believe the answer is:
here
'in this place' is the definition.
('here' can be a synonym of 'in this place')
'governor entertains queen' is the wordplay.
'governor' becomes 'he' (I've seen this in other clues).
'entertains' indicates putting letters inside.
'queen' becomes 'er' (abbreviation for Elizabeth Regina).
'he' going around 'er' is 'HERE'.
(Other definitions for here that I've seen before include "Hither" , "To hand" , "In attendance" , "Present - at this point" , "The present location" .)