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Town’s
nasty
smell
unhealthy
(7)
Town’s nasty smell unhealthy (7)
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The definition is at the beginning of the clue.
How the clue works
Town's is your definition — a borough being a type of town. Then the wordplay builds it up as a charade: nasty smell gives you BO (as in body odour), and unhealthy gives you ROUGH (as in feeling rough), and you just stick them together.