Salvage works outside small desert city (3,5)
I believe the answer is:
las vegas
'desert city' is the definition.
(city in the Mojave Desert)
'salvage works outside small' is the wordplay.
'works' indicates an anagram (work can mean to twist or convulse).
'outside' means one lot of letters goes inside another.
'small' becomes 's' (abbreviation - e.g. clothes size).
'salvage' is an anagram of 'lavegas'.
'lavegas' enclosing 's' is 'LAS VEGAS'.
(Other definitions for las vegas that I've seen before include "Nevada city famed for casinos" , "US casino city" , "Gambling centre in USA" , "Nevadan city" , "'City famous for gambling and excess (3,5)'" .)