I've searched everywhere in the system settings but I still can't find it.
NOTE: I found out the Dconf has mostly replaced Gconf. Since using Gconf did't work, I have updated the instructions for Dconf.
You can change the setting in dconf-editor
sudo apt-get install dconf-editor
Open Dconf and navigate to: org -> gnome -> settings-daemon -> peripherals -> mouse then check/uncheck the 'locate pointer' option.
org -> gnome -> settings-daemon -> peripherals -> mouse
gsettings set org.gnome.settings-daemon.peripherals.mouse locate-pointer true
Its under 'Mouse and Touchpad' in System Settings
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2 years ago