Repair layout around island grasslands (7)
I believe the answer is:
prairie
'grasslands' is the definition.
(I've seen this before)
'repair layout around island' is the wordplay.
'layout' indicates anagramming the letters (an alternative layout of the letters).
'around' indicates putting letters inside.
'island' becomes 'i' (geographical abbreviation).
'repair' anagrammed gives 'praire'.
'praire' going around 'i' is 'PRAIRIE'.
(Other definitions for prairie that I've seen before include "North American grassland" , "Cowboy song: ` `Bury me not on the lone .......' '" , "Large tract of grassland in N America" , "Barren plain" , "Broad rolling tract of land in the US" .)