Local Group Policy
Each computer that runs Windows XP or Windows 2000 has exactly one local Group Policy object In these objects, Group Policy settings are stored on individual computers, whether or not they are part of an Active Directory environment or a networked environment.
Local Group Policy objects contain fewer settings than nonlocal Group Policy objects, particularly under Security Settings. Local Group Policy objects do not support Folder Redirection or Software Installation.
For more information, see:
Because its settings can be overwritten by Group Policy objects that are associated with sites, domains, and organizational units, the local Group Policy object is the least influential object in an Active Directory environment. In a non-networked environment (or in a networked environment that does not have a domain controller), the local Group Policy object's settings are more important, because they are not overwritten by other Group Policy objects.
You can open the Group Policy snap-in to edit the local Group Policy object that is stored on your local computer. Click Group Policy to open the local Group Policy object.
If you want to edit the local Group Policy object that is stored on another computer on the network, open Group Policy as a stand-alone Microsoft Management Console (MMC) snap-in and browse to the Group Policy object that you want. For more information, see To open Group Policy as a stand-alone MMC snap-in
The local Group Policy object resides in systemroot\System32\GroupPolicy.
Computers that run Windows NT 4.0 or earlier do not have a local Group Policy object, and they do not recognize nonlocal Group Policy. See Migration issues for more information.