Niantic recently released an update to Pokemon GO that brought an update to the 'Nearby' feature to some users. How the new 'Nearby' feature would work was not detailed, but one lucky tester has shown off the revamped feature in action.
NeoGaf user Toki767, revealed how the feature looks in a gif posted to the NeoGaf forums, as seen below:
According to Toki767, clicking a 'Nearby' Pokemon on the lower right-hand portion of the screen causes the mobile game to zoom out and take you to an overview of your areas map. From there you will see just how far the Pokemon is from you.
Expanding the 'Nearby' Pokemon list will show you where the Pokemon was last seen and allows users to find nearby Pokemon and post their own sighting. If you select a 'Nearby' Pokemon to track, a marker will appear on your map showing you where the Pokemon is.
If the Pokemon despawns before you can catch it, the game will notify you.
Basically, Niantic took a feature away and came back with a pretty awesome one.