User policies automate the provisioning, ongoing management, and disposition of network user home folders. A user policy can be associated with the following Active Directory objects:
If you associate a user policy to a Domain or Organizational Unit object, the policy affects all users that reside in those areas of the directory, unless it is specifically blocked through a Blocking policy. If you associate the policy to a group, it affects all members of the group.
NOTE:Although creating a user policy for an individual User object is possible, it is somewhat impractical and should only be done in rare circumstances.
User policies, as well as all other policy types, are stored in the SQL Server database.