Island women and old James settled in Iowa (3,4)

I believe the answer is:

iwo jima

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'island' is the definition.
(I know that Iwo Jima is a island)

I don't understand the rest of the clue.

(Other definitions for iwo jima that I've seen before include "fierce battle" , "Second World War battle island" , "Jap. island (Nineteen forty five battle)" , "Pacific island (WW2 battle)" , "Japanese island" .)

I've seen this clue in the Sydney Morning Herald.

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