Make a hole close to old stream (5)
I believe the answer is:
drill
'make a hole' is the definition.
The definition and answer can be both acts as well as being singular nouns.
Maybe they are linked in a way I don't understand?
'close to old stream' is the wordplay.
'close to' indicates one should take the final letters (the 'close' to the word).
'stream' becomes 'rill' (rill is a kind of stream).
The final letter of 'old' is 'd'.
'd'+'rill'='DRILL'
Can you help me to learn more?
(Other definitions for drill that I've seen before include "Bore; small furrow" , "Routine" , "Exercise by repeated practice - bore" , "Tool; military training" , "Bore (a hole); fabric" .)