Island area’s first levy (5)
I believe the answer is:
atoll
'island' is the definition.
(I know that atoll is a type of island)
'area's first levy' is the wordplay.
'area's first' becomes 'a' (1st letter of 'area').
'levy' becomes 'toll' (I've seen this in another clue).
'a'+'toll'='ATOLL'
(Other definitions for atoll that I've seen before include "tropical paradise?" , "Bikini, say" , "Ring of coral" , "land threatened by rising sea levels" , "Circular coral reef" .)