Hill in position above city (7)

I believe the answer is:

toronto

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'above city' is the definition.
'Toronto' can be an answer for 'city' (Toronto is an example). I'm not sure about the 'above' bit.

'hill in position' is the wordplay.
'hill' becomes 'tor' (tor is a kind of hill).
'in position' becomes 'onto' (I can't justify this - if you can you should give a lot more credence to this answer).
'tor'+'onto'='TORONTO'

Can you help me to learn more?

(Other definitions for toronto that I've seen before include "Canadian city" , "major city" , "Largest city in Canada" , "Ontarian capital" , "Transatlantic city" .)

I've seen this clue in The Guardian.

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