Surrounded territory (7)
I believe the answer is:
enclave
'surrounded territory' is the definition.
(I've seen this in another clue)
This is all the clue.
(Other definitions for enclave that I've seen before include "Minority culture living within larger group" , "Vatican for example" , "Area enclosed within a foreign territory" , "Isolated territory enclosed by valence" , "Area ethnically different from its surroundings" .)