Highly regarded part of Caerphilly (4)

I believe the answer is:

hill

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'highly regarded part' is the definition.
I can't judge whether this definition defines the answer.

'of caerphilly' is the wordplay.
'of' indicates the answer is hidden within the clue.
'HILL' can be found hidden inside 'caerphilly'.

Can you help me to learn more?

(Other definitions for hill that I've seen before include "High mass of land" , "Gradient" , "High point, but not a mountain" , "high ground" , "Incline" .)

I've seen this clue in the Evening Standard.

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