Note nerds wandering around English city (7)
I believe the answer is:
dresden
'city' is the definition.
(I know that Dresden is a city)
'note nerds wandering around english' is the wordplay.
'note' becomes 'd' (musical note).
'wandering' is an anagram indicator.
'around' indicates putting letters inside.
'english' becomes 'E' (abbreviation as in OED).
'nerds' anagrammed gives 'rsden'.
'rsden' placed around 'e' is 'resden'.
'd'+'resden'='DRESDEN'
(Other definitions for dresden that I've seen before include "German city, noted for its porcelain" , "source of 26 [CHINA]" , "Saxony capital" , "Dr needs to be in the German city" , "Germany city - reddens (anag)" .)