Lived with Sid, with wild deer around (7)
I believe the answer is:
resided
'lived' is the definition.
('reside' can be a synonym of 'live')
'with sid with wild deer around' is the wordplay.
'with' is an insertion indicator.
'with wild' becomes 'e' (I can't explain this - if you can you should give a lot more credence to this answer).
'deer' becomes 'red deer' (red deer is a kind of deer).
'around' indicates putting letters inside.
'e' put into 'red' is 'reed'.
'sid' put within 'reed' is 'RESIDED'.
Can you help me to learn more?
(Other definitions for resided that I've seen before include "stayed" , "Abode" , "Lived" , "Sojourned" , "Dwelt" .)