Travelling far, lady in wonderful setting (9)

I believe the answer is:

fairyland

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

'wonderful setting' is the definition.
The answer and definition can be both locations as well as being singular nouns.
Perhaps you can see a link between them that I don't see?

'travelling far lady in' is the wordplay.
'travelling' is an anagram indicator.
'far'+'lady'+'in'='farladyin'
'farladyin' with letters rearranged gives 'FAIRYLAND'.

Can you help me to learn more?

(Another definition for fairyland that I've seen is " fabulous state".)

I've seen this clue in The Telegraph.

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