Hollow bamboo cut down regularly near city (7)
I believe the answer is:
bologna
'city' is the definition.
(city in Italy)
'hollow bamboo cut down regularly near' is the wordplay.
'hollow' means to remove the middle letters (the word is hollowed out).
'cut down' becomes 'log' (logging is a kind of cutting down).
'regularly' means one should take alternating letters (regularly take one letter, leave next etc.).
'bamboo' with its middle taken out is 'bo'.
The alternating letters of 'near' are 'na'.
'bo'+'log'+'na'='BOLOGNA'
(Other definitions for bologna that I've seen before include "Capital of Emilia-Romagna" , "Italian province" , "Italian city - smoked sausage" , "North Italian university city" .)