This tech article provides additional information regarding the proxy local policy files.
A Local policy file is a file you create yourself. When the VPM (Visual Policy Manager) is not the primary tool used to define policy, the Local file contains the majority of the policy rules for a system. If the VPM is the primary tool, this file is either empty or includes rules for advanced policy features that are not available in the VPM.
You can install the Local policy file with the following methods:
The appliance compiles the new policy from all source files and installs the policy, if the compilation is successful.