What does the cryptic crossword clue "Pools found on embankment at historic conference site (7)" mean?

The wordplay uses a charade (building blocks). POTS (synonym="pools, e.g. of money in betting") + DAM (synonym="embankment") = POTSDAM The answer is POTSDAM.

Pools found on embankment at historic conference site (7)

Guardian Cryptic #29173 | 18 Down | 2023-09-12 flower

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