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 192.168.0.0/16SocksPolicy 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