Everyman

[Wolfram9]

State whose borders are all land - or entirely water, we're told (4,3) H _ L _ / S _ E. TIA:)

[JJ109]

Holy See (Wholly sea)

[emmie]

looks like Holy See?

[Wolfram9]

Thank you both - but what kind of a clue is that? Poxy! Almost time for the bar to open :)

[JimF]

It's a double meaning clue.
A holy see is a state in the Catholic church:
https://en.wikipedia.org/wiki/Holy_See
And "holy see" sounds like "wholly sea" = entirely water.