Live in old vessel in Cyprus (6)
I believe the answer is:
occupy
'live in' is the definition.
(I've seen this before)
'old vessel in cyprus' is the wordplay.
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'vessel' becomes 'cup' (I've seen this in other clues**).
'in' is an insertion indicator.
'cyprus' becomes 'cy' (abbreviation).
'cup' put inside 'cy' is 'ccupy'.
'o'+'ccupy'='OCCUPY'
(Other definitions for occupy that I've seen before include "Busy - tenant" , "Engross" , "Capture - fill - dwell in" , "Fill space, time or position" , "Fill up; hold (a position)" .)