Source of industrial ooze covering lake house (5)
I believe the answer is:
igloo
'house' is the definition.
(I've seen this before)
'source of industrial ooze covering lake' is the wordplay.
'source of' indicates taking the first letters.
'ooze' becomes 'goo' ('goo' can be a synonym of 'ooze').
'covering' means one lot of letters goes inside another.
'lake' becomes 'l'.
The initial letter of 'industrial' is 'i'.
'goo' placed around 'l' is 'gloo'.
'i'+'gloo'='IGLOO'
(Other definitions for igloo that I've seen before include "Living quarters" , "Snow-house" , "Dome-shaped dwelling" , "Icy home for Eskimo" , "Inuit ice house" .)