Perhaps Holly’s outside watering hole, close to drunk (4)
I believe the answer is:
bark
'perhaps holly's outside' is the definition.
I can't judge whether this definition defines the answer.
'watering hole close to drunk' is the wordplay.
'watering hole' becomes 'bar' (watering hole can mean a drinking establishment).
'close to' indicates one should take the final letters (the close of something is the end).
The final letter of 'drunk' is 'k'.
'bar'+'k'='BARK'
Can you help me to learn more?
(Other definitions for bark that I've seen before include "Outer part of tree" , "possibly causing alarm in 23 [CATTERY] ?" , "Dog sound or tree coating" , "Canine noise" , "Outer covering of tree" .)