Settlement in Oregon but a city in Louisiana (5,5)
I believe the answer is:
baton rouge
'in louisiana' is the definition.
('Baton Rouge' is part of 'louisiana')
'settlement in oregon but a city' is the wordplay.
'oregon but a' anagrams to 'BATON ROUGE'.
Though, I'm not clear how this is indicated.
Can you help me to learn more?
(Other definitions for baton rouge that I've seen before include "Here you'll see some Americans" , "somewhere in LA" , "Capital of Louisiana" , "state capital" .)