Group Policy delivers settings to computers and users from Group Policy Objects (GPOs) linked to sites, domains and OUs. Understanding the order in which GPOs apply is the key to predicting results. The order is LSDOU: Local policy first, then Site, then Domain, then OUs from the top of the tree down to the OU that contains the object. Later GPOs overwrite earlier ones when settings conflict, so the GPO linked closest to the object normally wins. When several GPOs link to the same container, the one with link order 1 has the highest precedence and applies last.
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