Where to live a little in Derby? (7)
I believe the answer is:
habitat
'where to live' is the definition.
The answer is a location as well as being a singular noun. This is suggested by the definition.
'a little in derby?' is the wordplay.
'a little' becomes 'abit' (synonyms).
'in' means one lot of letters goes inside another.
'derby?' becomes 'hat' (derby is a kind of hat).
'abit' put inside 'hat' is 'HABITAT'.
Can you help me to learn more?
(Other definitions for habitat that I've seen before include "home, naturally" , "Where something's usually found" , "Natural environment (of creature)" , "Natural home or haunt" , "Bath at 1? (anag)" .)