It lies out with water all round (4)
I believe the answer is:
isle
'water all round' is the definition.
The answer and definition can be both natural objects as well as being singular nouns.
Maybe they are linked in a way I don't understand?
'it lies out' is the wordplay.
'lies' anagrams to 'ISLE'.
However, I'm not sure how this is indicated.
'with' acts as a link.
Can you help me to learn more?
(Other definitions for isle that I've seen before include "Small island" , "Man, Wight, etc" , "Land surrounded entirely by water" , "Man, for one" , "Small region of land" .)