Watering holes draw in European animals (5)
I believe the answer is:
bears
'european animals' is the definition.
'bears' can be an answer for 'animals' (bear is a kind of animal). I am not certain of the 'european' bit.
'watering holes draw in' is the wordplay.
'watering holes' becomes 'bars'.
'draw' becomes 'e' (I can't justify this - if you can you should believe this answer much more).
'in' indicates putting letters inside.
'bars' placed around 'e' is 'BEARS'.
Can you help me to learn more?
(Other definitions for bears that I've seen before include "Large animals, polar or grizzly" , "Big animals" , "Ursine animals" , "Massive mammals with shaggy coats" , "Carries" .)