Incident in village's last outlet (5)
I believe the answer is:
event
'incident' is the definition.
(thesaurus)
'village's last outlet' is the wordplay.
'last' says to take the final letters.
'outlet' becomes 'vent' (I've seen this before).
The last letter of 'village' is 'e'.
'e'+'vent'='EVENT'
'in' is the link.
(Other definitions for event that I've seen before include "pole vault maybe" , "Something going on" , "Something taking place" , "'Occurrence, happening (5)'" , "'Occurrence, occasion (5)'" .)