Unlikely local capital (7)
I believe the answer is:
tallinn
'capital' is the definition.
(Tallinn is an example)
'unlikely local' is the wordplay.
'unlikely' becomes 'tall' (I've seen this in other clues).
'local' becomes 'inn' (I've seen this before).
'tall'+'inn'='TALLINN'
(Other definitions for tallinn that I've seen before include "European capital" , "Capital of Estonia" , "Estonian city" , "Capital on the Gulf of Finland" .)