Party girl with quarters in the Lifford area (7)
I believe the answer is:
donegal
'the lifford area' is the definition.
(Lifford is in County Donegal in Ireland)
'party girl with quarters' is the wordplay.
'party' becomes 'do' (do is a kind of party).
'girl' becomes 'gal' (synonyms).
'with' says to put letters next to each other.
'quarters' becomes 'ne' (N and E are quarters on a compass).
'gal' put after 'ne' is 'negal'.
'do'+'negal'='DONEGAL'
'in' is the link.
(Other definitions for donegal that I've seen before include "County of NW?Ireland" , "town and county" , "Irish town" , "Lean dog (anag) - Irish county" , "Ireland's northmost county" .)