A nymph like this may be seen in the neighbourhood (8)
I believe the answer is:
arethusa
'a nymph' is the definition.
(I've seen this before)
'like this may be seen in the neighbourhood' is the wordplay.
'like this' becomes 'thus' (I've seen this before).
'may be seen in' indicates putting letters inside.
'the neighbourhood' becomes 'area' (I've seen this before).
'thus' put within 'area' is 'ARETHUSA'.
(Other definitions for arethusa that I've seen before include "wood nymph" , "Orchid" .)