Crossword Genius

Limit a conurbation’s ability to house people? (8)

Ross

I believe the answer is:

capacity

I'm a little stuck... Click here to teach me more about this clue!

'ability to house people?' is the definition.
I can't judge whether this definition defines the answer.

'limit a conurbation's' is the wordplay.
'limit' becomes 'cap' (capping is a kind of limiting).
'conurbation' becomes 'city' (I've seen this before).
'cap'+'a'+'city'='CAPACITY'

Can you help me to learn more?

(Other definitions for capacity that I've seen before include "Ability to perform or produce" , "A city cap has ability to contain" , "The amount that can be contained, space" , "The wherewithal" , "how much can one take?" .)

I've seen this clue in The Times.
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