Scott's novel town in NSW (7)
I believe the answer is:
ivanhoe
'scott's novel' is the definition.
(Walter Scott novel)
I can't explain the remainder of the clue.
Can you help me to learn more?
(Other definitions for ivanhoe that I've seen before include "one Rowena loved" , "Walter Scott's eponymous hero" , "Sir Walter Scott hero" , "Scott's Crusading hero" , "romance" .)