Group Policy Object (GPO) is a collection of settings that control the working environment of user accounts and computer accounts. GPOs defines registry-based polices, security options, software installation and maintenance options, scripts options, and folder redirection options.
Microsoft provides a program snap-in that allows you to use the Group Policy Microsoft Management Console (MMC). The selections result in a Group Policy Object. Group Policy Object Editor 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.
There are two kinds of Group Policy objects: local and nonlocal. 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.
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.