Local I love — Nag's Head — enjoys majestic setting (8)

I believe the answer is:

regional

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'local' is the definition.
(in a particular region)

I don't understand how the rest of the clue works.

(Other definitions for regional that I've seen before include "Limited to a particular part of the country - liar gone (anag)" , "Like some food" , "outside the capital" , "Relating to local area" , "From a geographical area" .)

I've seen this clue in The Independent.

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