Where fruit grows, or variety of beet (7)
I believe the answer is:
orchard
'where fruit grows' is the definition.
'or variety of beet' is the wordplay.
'variety of beet' becomes 'chard' (I've seen this before).
'or'+'chard'='ORCHARD'
(Other definitions for orchard that I've seen before include "Land planted with fruit trees" , "Small wood of fruit trees" , "Cultivated land" , "Fruit-growing area" , "Garden of fruit trees" .)