Kitty is on edge hovering near the water, a popular holiday spot (8)
I believe the answer is:
poolside
'hovering near the water a popular holiday spot' is the definition.
I don't know anything about this answer so I cannot tell whether this works.
'kitty is on edge' is the wordplay.
'kitty' becomes 'pool' (synonyms).
'is on' is a charade indicator (letters next to each other).
'edge' becomes 'side' (edge can mean the side of something).
'pool'+'side'='POOLSIDE'
Can you help me to learn more?
(Other definitions for poolside that I've seen before include "where lifeguard may be found" , "where bathers congregate" , "next to lido" .)