The Library displays a series of folders that contain various documents. The System folder, created by default, contains a series of folders with the system documents that are part of the Developer application. System documents include standard icon packages, publishing styles, templates, and master role lists for all supported languages.
You should create additional folders in the Library to organize your content development, similar to how you use folders on your computer to organize and manage files. However, keep in mind that the folders in the Library are not the same as folders on your computer since Developer content is stored in a database and not on a file system. The folders in the Library are purely for organization purposes.
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