Ill-shaven criminal in state capital (9)
I believe the answer is:
nashville
'state capital' is the definition.
(state capital of Tennessee)
'ill-shaven criminal in' is the wordplay.
'criminal' indicates an anagram.
'in' is an insertion indicator.
'shaven' anagrammed gives 'nashve'.
'ill' going within 'nashve' is 'NASHVILLE'.
(Other definitions for nashville that I've seen before include "Grand Ole Opry city" , "Capital of Tennessee and home of country music" , "US city" , "country town" , "Centre of country and western" .)