When you log in as a domain user, the computer asks the domain controller what privileges are assigned to you. Domain usersĪ domain user is one whose username and password are stored on a domain controller rather than the computer the user is logging into. The computer itself then applies all the permissions (for example, "can use the CD-ROM", "can install programs") and restrictions (for example, "cannot install programs") that are assigned to you for that computer. When you log in as a local user, the computer checks its own list of users and its own password file to see if you are allowed to log into the computer.
In Windows, a local user is one whose username and encrypted password are stored on the computer itself. Local users and domain users in Windows Local users
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