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It allows you to connect to a computer using its NetBIOS name rather than an IP address. It is similar in function to the IP Hosts file.

This technology is effectively deprecated (NetBIOS is an old technology) but allows the LMHost file to resolve NETBIOS names to IP address for environments with older applications. It is the last 'name resolution' mechanism to be used before name resolution fails.

Physically, it is a text file that is stored in Windows\System32\drivers\etc. A sample LM Host file with explanation can be found there (LMHost.sam).

It cannot be used with IPv6 and Windows uses DNS in preference to NetBIOS names since at least Windows 2000.

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