I live on Rhode Island and a European peninsula (6)
I believe the answer is:
iberia
'european peninsula' is the definition.
(I've seen this before)
'i live on rhode island and a' is the wordplay.
'live' becomes 'be' ('be' can be a synonym of 'live'**).
'on' says to put letters next to each other.
'rhode island' becomes 'ri' (US postal abbreviation).
'and' means one lot of letters go next to another.
'i'+'be'+'ri'+'a'='IBERIA'
(Other definitions for iberia that I've seen before include "Great European peninsula containing Spain and Portugal" , "Spain and Portugal together" , "SW European peninsula" , "Peninsula housing Spain and Portugal" , "Spain's national flag-carrying airline" .)