Bird may be seen in water nearby (4)
I believe the answer is:
tern
'bird' is the definition.
(tern is a kind of bird)
'seen in water nearby' is the wordplay.
'seen in' indicates the answer is hidden within the clue.
'TERN' is hidden in the letters of 'water nearby'.
'may be' is the link.
(Other definitions for tern that I've seen before include "Small gull with forked tail" , "Seabird related to the gull" , "flier" , "Fork-tailed seabird" , "Rent out this gull" .)