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Tor, config file, SocksPolicy

Hi,\ in etc/tor/torrc (the tor config file) we can read the following > \## Entry policies to allow/deny SOCKS requests based on IP address.\ > \## First entry that matches wins. If no SocksPolicy is set, we accept\ > \## all (and only) requests that reach a SocksPort. Untrusted users who\ > \## can access your SocksPort may be able to learn about the connections\ > \## you make.\ > \#SocksPolicy accept 192.168.0.0/16\ > \#SocksPolicy reject *\

I don't understand, is this for the TOR network to query the local daemon ? or is it for LAN node to use the local TOR daemon ?

Thanks

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