Sort of water found in island church (3)
I believe the answer is:
ice
'sort of water' is the definition.
'island church' is the wordplay.
'island' becomes 'i'.
'church' becomes 'ce' (abbreviation for Church of England**).
'i'+'ce'='ICE'
'found in' acts as a link.
(Other definitions for ice that I've seen before include "Cold demeanour" , "Solid H2O" , "Decorate a cake" , "It's cold and slippy" , "Precious stones" .)