Sets (up) (4)
'sets up' is the definition.
('arrange' can be a synonym of 'set up')
This is the entire clue.
(Other definitions for arranges that I've seen before include "Organises" , "Settles" , "scores" .)
(Other definitions for tees that I've seen before include "banker" , "Middlesbrough's river" , "used by golfers" , "Stockton's river" , "Golfer's supports; river" .)