Consider the following scenario:

• You are running Windows Internet Explorer 7 on a Windows-based computer.
• In a workgroup environment, you use Group Policy to disable the Turn on automatic detection of the intranet setting and to enable the Intranet Sites: Include all local (intranet) sites not listed in other zones setting.
• You use Internet Explorer 7 to access a local intranet site.

In this scenario, the local site is displayed through the Internet zone instead of through the “Local intranet” zone as expected.