Stream and meadow in Lancashire town (7)
I believe the answer is:
burnley
'lancashire town' is the definition.
(I've seen this before)
'stream and meadow' is the wordplay.
'stream' becomes 'burn' (a burn is a small stream).
'and' says to put letters next to each other.
'meadow' becomes 'ley' (I've seen this in other clues).
'burn'+'ley'='BURNLEY'
'in' is the link.
(Other definitions for burnley that I've seen before include "NW town" , "Lancashire town" .)