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In a system with multiple local Group Policy Objects (GPOs), the user-specific Group Policy takes precedence over the computer-specific Group Policy. This hierarchy exists because Windows processes user-related settings after applying the computer-related settings.

When a user logs onto a system, the operating system applies the computer-specific GPO first, which contains settings that apply to the machine regardless of who is using it. Afterward, any user-specific settings that are defined in the local GPO are applied. As a result, the settings in the user-specific GPO can override or modify the behavior set by the computer-specific GPO for that particular user session.

This concept is crucial in managing policies as it helps administrators ensure that individual user configurations can adapt even in environments where broader machine policies are in place. It allows for more flexible and tailored user settings, which can account for the needs of different users operating on the same machine. Hence, understanding the precedence is critical for effective Group Policy management.