Reported hoard found on lake in mountainous region (7)

I believe the answer is:

kashmir

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'region' is the definition.
(I know that Kashmir is a region)

I can't explain the remainder of the clue.

(Other definitions for kashmir that I've seen before include "Region on the border of India and Pakistan" , "Subcontinental border region" , "Himalayan region" , "disputed Asian region" , "Himalayan territory" .)

I've seen this clue in The Times.

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