The Location tab is used to specify where the commands for a tool service will be run. It can be run either at

By managing the locations you can change where a symbolic location points to. Using this, you can change all the tool services run at that symbolic location to, for example, be run on a remote machine rather than locally.

In this example, you can see that the tool service is being configured to run at the explicit location called "remote".

If you want to add or change an explicit or symbolic location, then click the Manage locations button. This takes you to the Tool invocation preferences.