Crossword Genius

Set bed by lake (7)

Ross

I believe the answer is:

coterie

'set' is the definition.
(I know that coterie is a type of set)

'bed by lake' is the wordplay.
'bed' becomes 'cot' (cot is a kind of bed).
'by' means one lot of letters go next to another.
'lake' becomes 'erie' (Lake Erie is one of the Canadian/US 'Great Lakes').
'cot'+'erie'='COTERIE'

(Other definitions for coterie that I've seen before include "Select group" , "Group, band" , "Exclusive social circle" , "Small exclusive group of people" , "EEC trio in exclusive group" .)

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