Ground near the capital (7)
I believe the answer is:
teheran
'capital' is the definition.
(alternative spelling of Tehran, capital of Iran)
'ground near the' is the wordplay.
'ground' is an anagram indicator ('grind' the letters into a new form).
'near'+'the'='nearthe'
'nearthe' anagrammed gives 'TEHERAN'.
(Other definitions for teheran that I've seen before include "Iran's capital" , "Iran capital (one spelling)" , "City" , "Near the (anag) - capital" .)