Located as bed designed (5)
I believe the answer is:
based
'located' is the definition.
(I've seen this before)
'as bed designed' is the wordplay.
'designed' indicates an anagram (designed with the letters).
'as'+'bed'='asbed'
'asbed' is an anagram of 'BASED'.
(Other definitions for based that I've seen before include "Founded or used as evidence" , "Founded, grounded" , "Located" , "Worthless" , "Positioned" .)