Town in Athlone? Athlone! (5)
I believe the answer is:
neath
'town' is the definition.
(town in Wales)
'in athlone? athlone' is the wordplay.
'in' says the answer is hidden in the clue.
'NEATH' is hidden within 'athlone athlone'.
(Other definitions for neath that I've seen before include "Town NE of Swansea" , "Town near Swansea" , "River" , "Welsh team" , "Welsh rugby club" .)