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Nears in new setting and not so nutty (5)


I believe the answer is:


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'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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