You heard blow is consumed by teetotallers in American capital (7)
I believe the answer is:
augusta
'american capital' is the definition.
(state capital of Maine)
'you heard blow is consumed by teetotallers' is the wordplay.
'you heard' becomes 'U' (homophone of 'you').
'blow' becomes 'gust' (as in a gust of wind).
'is consumed by' means one lot of letters goes inside another (inserted letters get consumed).
'teetotallers' becomes 'AA' (Alcoholics Anonymous).
'u'+'gust'='ugust'
'ugust' inserted inside 'aa' is 'AUGUSTA'.
'in' acts as a link.
(Other definitions for augusta that I've seen before include "Girl - state capital" , "22 [MAINE] 's capital" , "Algernon's aunt (Importance of Being Earnest)" , "City of Georgia" , "American city" .)