Key area, watering hole (5,3)
I believe the answer is:
space bar
'key' is the definition.
(space bar is a kind of key)
'area watering hole' is the wordplay.
'area' becomes 'space' (space is a kind of area).
'watering hole' becomes 'bar' (I've seen this before).
'space'+'bar'='SPACE-BAR'
(Other definitions for space bar that I've seen before include "Long key on a typewriter" , "Longest typing key" , "key, large one" , "Key feature" , "It is found on a keyboard" .)