Soldiers encamped around unknown border area (5)

I believe the answer is:

powys

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'area' is the definition.
(I have seen 'area of Wales' mean 'powys' so perhaps 'area' could also mean 'powys')

I don't understand how the remainder of the clue works.

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(Other definitions for powys that I've seen before include "John Cowper -, twentieth century Welsh novelist" , "County in Mid Wales" , "He wrote A Glastonbury Romance" , "area of Wales" , "County of central Wales" .)

I've seen this clue in The Times.

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