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Nears in new setting and not so nutty (5)

Ross

I believe the answer is:

saner

I'm a little stuck... Click here to teach me more about this clue!

'not so nutty' is the definition.
(I've seen this in another clue)

'nears in new setting' is the wordplay.
'nears' can be anagrammed to 'SANER'.
However, I am not clear how the anagram is indicated.

'and' acts as a link.

Can you help me to learn more?

(Other definitions for saner that I've seen before include "less as hatter?" , "Less mad" .)

I've seen this clue in the Sydney Morning Herald.
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