If Local Security is installed on a LAN Server workstation, the files on the 386-HPFS drive and all APIs on that server are protected against unauthorized access by a user or application at that server. Access to files on a drive with Local Security is similar to a redirected drive (except that a local user can read or run local files unless restricted by an administrator).

All APIs on a server with Local Security, however, require the same administrative authority as calls to a remote server. LAN Server verifies that the caller has sufficient access privilege for the requested function. Furthermore, Local Security can be invoked at the API level even if it is not installed on a LAN Server drive.