When you configure external entity resolution with WebLogic Server, you physically copy the entity files to a directory accessible by WebLogic Administration Server and specify that the Administration Server use the local copy whenever the external entity is referenced in an XML document.
You can specify that either the Public ID or System ID be used when the entity is referenced in an XML document. You can also specify when the entity should be cached and when it should be refreshed.
The location of a local copy of an external entity (e.g., a DTD) that is associated with this registry entry. The location is either a pathname relative to one of the XML registry directories of the installation, or is a URI of the entity location in some local repository (e.g. dbms).