Where one grows fruit or vegetable (7)
I believe the answer is:
orchard
'where one grows fruit' is the definition.
'or vegetable' is the wordplay.
'vegetable' becomes 'chard' (chard is a kind of vegetable).
'or'+'chard'='ORCHARD'
(Other definitions for orchard that I've seen before include "Land growing 15 across" , "Fruit-growing area" , "Group of fruit trees" , "Small wood of fruit trees" , "Place for abundant fruit" .)