Parking by passageway leading to yard in Scottish town (7)
I believe the answer is:
paisley
'scottish town' is the definition.
(I've seen this before)
'parking by passageway leading to yard' is the wordplay.
'parking' becomes 'p' (abbreviation on road signs).
'by' means one lot of letters go next to another.
'passageway' becomes 'aisle' (aisle is a kind of passageway).
'leading to' means one lot of letters go next to another (some letters go before or lead others).
'yard' becomes 'y' (abbreviation).
'p'+'aisle'+'y'='PAISLEY'
'in' acts as a link.
(Other definitions for paisley that I've seen before include "Ian, politician or kind of pattern" , "Patterned textile originating in a Scottish town" , "Colourful Scottish pattern" , "Scottish town - bright pattern - Unionist Ian" , "Scottish fabric pattern" .)