If you turn on the feature, it will use your location to tailor search results to your locality. Here's how it works:
As of today, when you visit www.google.com from Safari on your iPhone 3.0, you can choose to turn on My Location by tapping on the link on the homepage. When you tap on the "update" link, your location will be updated and displayed right there on the homepage. Whenever you want to refresh your location, just tap the "update" link. Testing this in New York, my search for "jazz clubs" returned a handful of places within walking distance. I picked one, tapped the phone number, made a reservation, and we were set for the night.Currently, the feature only works in the U.S. and U.K. Of course, you can also use the Google Mobile App, available in the App Store, but these sorts of changes that can be run through the browser are easier than having to go through the App Store's approval process, an many recognize.
As always, your privacy is one of our top concerns. Google won’t use your location in search unless you explicitly opt in. And you can always disable the feature from Preferences at the bottom of the homepage.