Indian on lake producing fish basket (5)
I believe the answer is:
creel
'fish basket' is the definition.
(I've seen this before)
'indian on lake' is the wordplay.
'indian' becomes 'cree' (Cree is an example).
'on' says to put letters next to each other.
'lake' becomes 'l'.
'cree'+'l'='CREEL'
'producing' acts as a link.
(Other definitions for creel that I've seen before include "Fisherman's basket" , "Angler's wicker basket" , "Container for fish" , "Lobster pot" , "Large fishing basket" .)