Legendary bird somewhere in Arizona (7)
I believe the answer is:
phoenix
This clue is a double definition.
'legendary bird' is the first definition.
(I've seen this before)
'somewhere in arizona' is the second definition.
(capital city of Arizona)
(Other definitions for phoenix that I've seen before include "Bird that rose from its own ashes" , "Fabled bird" , "Mythological bird" , "capital in America" , "Firebird" .)