> It 'can be done using only the API V3?

No.
The Google Places API
http://code.google.com/apis/maps/documentation/places/
is the nearest tool for finding 'things within a radius', but its more
about businesses and facilities than 'cities'.

This old post might help
http://groups.google.com/group/google-maps-api/browse_thread/thread/744e480ad9a25b33/db2c02e3bf6fe816

If what you really want to know is 'where is this point', have you
looked at reverse geocoding?

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