Peaked cap, which may divide Derby or Cheshire? (12)
I believe the answer is:
cheesecutter
'peaked cap' is the definition.
'cheesecutter' can be an answer for 'cap' (I've seen this before). I am unsure of the 'peaked' bit.
'may divide derby or cheshire?' is the wordplay.
I cannot quite see how this works, but
'divide' could be 'cut' (cutting is a kind of dividing) and 'cut' is found within the answer.
'cheshire?' could be 'cheese' (I've seen this before) and 'cheese' is found within the answer.
The remaining letters 'ter' is a valid word which might be clued in a way I don't see.
This explanation may well be incorrect...
'which' acts as a link.
Can you help me to learn more?
(Another definition for cheesecutter that I've seen is " Cap".)