Group Policy objects
Policy settings are stored in Group Policy objects The Group Policy snap-in can be thought of as an application whose document type is the Group Policy object, just as a word processor might use .doc or .txt files.
Nonlocal and local Group Policy objects
There are two kinds of Group Policy objects. Nonlocal Group Policy objects, which are stored on a domain controller, are available only in an Active Directory environment. They apply to users and computers in the site, domain, or organizational unit with which the Group Policy object is associated. For more information, see Storage of Group Policy objects
Local Group Policy objects are stored on individual computers. Only one local Group Policy object exists on a computer, and it has a subset of the settings that are available in a nonlocal Group Policy object. Local Group Policy object settings can be overwritten by nonlocal settings if they are in conflict; otherwise, both groups of settings apply. For more information, see Local Group Policy
