Hat found in canal (6)
I believe the answer is:
panama
I believe this clue is a double definition.
'hat' is the first definition.
(I know that Panama is a type of hat)
'canal' is the second definition.
'found in' is the link.
(Other definitions for panama that I've seen before include "isthmus" , "Style of hat" , "A great canal or a straw hat" , "Canal zone" , "Central American country" .)