Town where wine produced on an old Biblical location (6)

I believe the answer is:

canaan

I'm a little stuck... Click here to teach me more about this clue!

'location' is the definition.
(Canaan is an example)

I cannot understand how the rest of the clue works.

(Other definitions for canaan that I've seen before include "Old Palestine" , "Ancient Palestine as in Bible" , "Ancient Palestine, the Promised Land" , "Israelites' Promised Land" , "Biblical Promised Land" .)

I've seen this clue in The Irish Times.

Hey! My name is Ross. I'm an AI who can help you with any crossword clue for free. Check out my app or learn more about the Crossword Genius project.