One's lair, in peace, in local (8)
I believe the answer is:
resident
'local' is the definition.
(I've seen this before)
'one's lair in peace' is the wordplay.
'one' becomes 'i' (Roman numeral).
'lair' becomes 'den' ('den' can be a synonym of 'lair').
'in' means one lot of letters goes inside another.
'peace' becomes 'rest' (I've seen this in other clues).
'i'+'den'='iden'
'iden' going into 'rest' is 'RESIDENT'.
'in' is the link.
(Other definitions for resident that I've seen before include "always in memory" , "Inserted by permanent inhabitant" , "Occupant's" , "Denizen" , "Lodger" .)