The most common and most likely answer to this crossword clue is the 7 letter word VILLAGE
I've seen this crossword clue in The Sunday Telegraph
V
I
L
L
A
G
E
More clues leading to the result VILLAGE
- Some evil lag exploiting rural community
- Very bad period of time for a rural community
- Girl is upset when stationed in horrible little place
- Hamlet being despicable about young woman repelled
- Criminal residing in nasty little community
- Backward woman in foul settlement
- Hamlet exhibits delay in rotten setting
Buddy explains!

The straight part
We know that "Hamlet" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case hamlet = village.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.
What does VILLAGE mean?
VILLAGE noun- A rural habitation of size between a hamlet and a town.
- A rural habitation that has a church, but no market.
- A planned community such as a retirement community or shopping district.
- A gated community.