Spa town in Allier, France; seat of the collaborationist government from 1940-44 (5)

I believe the answer is:

vichy

(Other definitions for vichy that I've seen before include "Town form which iccupied France was administered during WW2" , "French city" , "French wartime capital" , "French spa town" .)

I've seen this clue in The Mirror.

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