Studying in a Berkshire town (7)
I believe the answer is:
reading
I believe this is a double definition.
'studying' is the first definition.
('read' can be a synonym of 'study')
'berkshire town' is the second definition.
(Reading is a town in Berkshire)
'in a' acts as a link.
(Other definitions for reading that I've seen before include "English university place" , "Perusing; university in Berkshire" , "Oscar Wilde's Gaol" , "Recital" , "Town west of London" .)