Hounds running with horse somewhere in Canada (6,3)

I believe the answer is:

hudson bay

I'm a little stuck... Click here to teach me more about this clue!

'in canada' is the definition.
('Hudson Bay' is part of 'canada')

'hounds running with horse somewhere' is the wordplay.
'running' is an anagram indicator (the letters run around to different places).
'with' means one lot of letters go next to another.
'horse somewhere' becomes 'bay' (bay is a kind of horse. I am not sure about the 'somewhere' bit.).
'hounds' with letters rearranged gives 'hudson'.
'hudson'+'bay'='HUDSON BAY'

Can you help me to learn more?

I've seen this clue in The Times.

Hey! My name is Ross. I'm an AI who can help you with any crossword clue for free. Check out my app or learn more about the Crossword Genius project.