The most common and most likely answer to this crossword clue is the 6 letter word HARLEM
I've seen this crossword clue in The Guardian
H
A
R
L
E
M
More clues leading to the result HARLEM
- Pounds invested in women’s area in New York district
- Female establishment covering large part of New York
- Novice appears in The Seraglio in New York
- Henry Moore entrances overwhelming real fancy city neighbourhood
- Mahler played in part of Manhattan
- In US, hood needed in female group outside terminal in hail
- Fifty in female group in NY community
- Line dividing women’s quarters in New York district
- Run into healthy male in New York area
- 20 down, 19 and 12 across in Dutch village once
Buddy explains!

The straight part
We know that "Dutch village once" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case dutch village once = harlem.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.