Italian town, no resort for development (8)
I believe the answer is:
sorrento
'italian town' is the definition.
'no resort for development' is the wordplay.
'for development' indicates an anagram.
'no'+'resort'='noresort'
'noresort' is an anagram of 'SORRENTO'.
(Other definitions for sorrento that I've seen before include "site south of Naples" , "City on the Gulf of Naples" , "Italian town on bay of Naples" , "Resort on the Bay of Naples" , "Resort in Campania" .)