You can apply for this new position either way. Tell your supervisor or not. Personally, I would prefer that my employee tell me. I have a strict personal rule about not wanting an employee to stifle there creative, professional and otherwise ambitions.

If someone has a problem, either with me or with another employee, I want to know about it because I can't help a person succeed if I don't know what is standing in their way.

Unfortunately, not all hiring managers or supervisors feel this way (mistake on their part) so, you will need to do what you feel is best.

If your supervisor is the type who will help you to succeed, is understanding of your desire to be closer to family and will be happy to write you a reference or will be a reference, then by all means enlist her help.

If your supervisor is one who will immediately conclude that you are not long for the job at your current company and will concentrate more on your job search than on your work so why bother any more with you, you may find yourself terminated.

When you fill out your application, there may be a section where you will need to list your supervisor and if that supervisor can be contacted. You can submit a comment asking that the supervisor not be contacted until closer to the final selection process or after employment is offered knowing full well that the offer will be rescinded if your supervisor is negative about you.

When an offer is extended, don't tell your supervisor "I quit" and then pack up your desk and leave. Offer to give at least one weeks notice. Preferably two. Your supervisor may even just say to you on that day to go and not bother with a notice.

You don't mention how far away you live from your family so just be aware that relocation may not be offered by the company you are applying to. If that company is in a different state or is a certain distance away but in the same state, the company you are applying to may not want to entertain the idea of interviewing you.

Wait until the actual interview to let them know that you will be coming from another location altogether and only after they have initiated that topic. Put down a family member's address so that the company you are applying at will realize that you do have a local address.

If you have a cell number, include that. Cell phones with different area codes or non-local numbers are more common than people think and employers do not hesitate on calling them.

In your cover letter and during the interview, when the question comes up about why you want to leave your current job, try not to state the high cost of gas as one of your reasons. This would be a good time to state your desire to be nearer to your family and coming back to your roots.

It really isn't the interviewer's business, but for a personal touch, you can state the failing health of some of the older members of your family and your desire to be close to them. This might have the unwanted effect of the interviewer thinking you will be taking a lot of time off for personal reasons, so that card should be used sparingly and only if you have the feeling of good will and concern from the interviewer.