Google announced they added a new search refinement to "show options" section. The refinement allows you to filter results by results relevant to being nearby your location. Google explained:
Location has become an important part of the way we search. If you're a foodie looking for restaurant details, food blogs or the closest farmer's market, location can be vital to helping you find the right information. Starting today, we've added the ability to refine your searches with the "Nearby" tool in the Search Options panel. One of the really helpful things about this tool is that it works geographically — not just with keywords — so you don't have to worry about adding "Minneapolis" to your query and missing webpages that only say "St. Paul" or "Twin Cities." Check it out by doing a search, clicking on "show options" and selecting "Nearby."
I personally do not see it, maybe because I am in Israel right now. But here is a picture from the Google blog:
Forum discussion at WebmasterWorld.
