Setter goes to ship’s dining area (4)
I believe the answer is:
mess
'dining area' is the definition.
(I've seen this before)
'setter goes to ship's' is the wordplay.
'setter' becomes 'me' (the setter of the clue).
'goes to' says to put letters next to each other.
'ship' becomes 'ss'.
'me'+'ss'='MESS'
(Other definitions for mess that I've seen before include "sloppy > food" , "Canteen - muddle" , "Untidy confusion" , "pap" , "Food-hall" .)