Melting ice does, see (7)
I believe the answer is:
diocese
'see' is the definition.
(both can mean a bishop's associated area)
'melting ice does' is the wordplay.
'melting' indicates anagramming the letters.
'ice'+'does'='icedoes'
'icedoes' with letters rearranged gives 'DIOCESE'.
(Other definitions for diocese that I've seen before include "Bishopric" , "District under a bishop's jurisdiction" , "District under care of bishop" , "Ecclesiastical see" , "Bishop's see" .)