Bird in water nearby (4)
I believe the answer is:
tern
'bird' is the definition.
(tern is a kind of bird)
'in water nearby' is the wordplay.
'in' indicates the answer is hidden within the clue.
'TERN' can be found hidden inside 'water nearby'.
(Other definitions for tern that I've seen before include "Seabird related to the gull" , "Seagull" , "Fork-tailed relative of the gull" , "Pay rent for seabird" , "Three-masted schooner" .)