Town water (5)

I believe the answer is:

vichy

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This clue might be a double definition.

'town' is the first definition.
Both the definition and answer are singular nouns.
Maybe you can see a link between them that I don't see?

'water' is the second definition.
(Vichy water is an example)

Can you help me to learn more?

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

I've seen this clue in the Evening Standard.

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