From Bulbapedia, the community-driven Pokémon encyclopedia.
Faraway place is a location placeholder found in the Generation IV and V games. This placeholder data is used when trading over a Pokémon from another Pokémon game which was captured in a new location not found in the older game.
For example, a Pokémon met in the Distortion World that is traded to Diamond or Pearl will display "faraway place" as its met location. Although it is part of Eterna City, as it was not an existing location in Diamond and Pearl, the Galactic Eterna Building (T.G. Eterna Bldg) in Platinum will provide the same result. Likewise, a Pokémon caught in HeartGold and SoulSilver in a location that does not exist in Diamond, Pearl, and Platinum traded to one of these games will also have this placeholder. However, in HeartGold and SoulSilver, if a Pokémon is met in a place like the Global Terminal which also exists in Platinum, its location will still be displayed as "Global Terminal" in Platinum; however, Kanto Victory Road is treated as a separate location to Sinnoh Victory Road, so Pokémon caught in Kanto Victory Road will display the obtained location of "Faraway place" in Diamond, Pearl, and Platinum.
This also applies to Pokémon traded between Black and White and Black 2 and White 2. Any Pokémon found in new areas such as Aspertia City or the Castelia Sewers will to be regarded as being met in a "faraway place" in Black and White. However, Pokémon met at the Pokémon World Tournament are treated as having been met in the Cold Storage in Black and White, and vice versa.
Locations that are treated as faraway place
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Reason: Index numbers of each location.
Equivalent in other generations
In Pokémon Crystal, the Cianwood seer will respond "Whaaaat? I can't tell a thing!" if she is inquired about the origin of a Pokémon that has been in the Generation I games at any point or was obtained in a game other than Crystal.
In Ruby and Sapphire, Pokémon whose "met location" corresponds to index numbers above 087 (which do not exist in Ruby and Sapphire) the game will display "obtained in a trade" rather than the location name. In FireRed and LeafGreen, this occurs for Pokémon whose met location index is below 088 or above 195. In Emerald, however, any Pokémon that was not transferred from Pokémon Colosseum or Pokémon XD will display the correct met location.