See church featured in OED is replaced (7)
I believe the answer is:
diocese
'see' is the definition.
(both can mean a bishop's associated area)
'church featured in oed is replaced' is the wordplay.
'church' becomes 'ce' (abbreviation for Church of England).
'featured in' means one lot of letters goes inside another.
'replaced' is an anagram indicator.
'oed'+'is'='oedis'
'oedis' is an anagram of 'diose'.
'ce' placed into 'diose' is 'DIOCESE'.
(Other definitions for diocese that I've seen before include "District under care of bishop" , "Jurisdiction of a bishop" , "Area under bishop" , "Bishop's region" , "Bishopric" .)