James in Iowa recreated Japanese island (3,4)
I believe the answer is:
iwo jima
'japanese island' is the definition.
(I've seen this before)
'james in iowa recreated' is the wordplay.
'james' becomes 'jim' (short for James).
'in' indicates putting letters inside.
'recreated' is an anagram indicator.
'iowa' is an anagram of 'iwoa'.
'jim' put into 'iwoa' is 'IWO JIMA'.
(Other definitions for iwo jima that I've seen before include "Second World War battle island" , "Japanese island" , "site for WWII battle" , "Pacific island (WW2 battle)" , "Largest of the Japanese Volcano Islands, heavily fortified in World War II" .)