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Understanding Claude Code Configuration Files

1. CLAUDE.md

What is it: This is your project's main file
When is it created: When you run the /init command
Who can see it: You commit this file to Git, so your entire team can see it
Where is it located: In your project folder
Example: If you're working with a team, everyone will have access to this file

2. CLAUDE.local.md

What is it: This is your personal file
Who can see it: Only you - no other engineers
What's it for: You write your personal instructions and customizations for Claude here
Where is it located: In your project folder
Example: If you want Claude to work in a specific way just for you

3. ~/.claude/CLAUDE.md

What is it: This is your global settings file
Where does it work: In every project on your machine
What's it for: Contains instructions you want Claude to follow in all projects
Where is it located: Inside the .claude folder in your home directory (~)
Example: If you want Claude to always write code in the same style, in every project

In simple words:

CLAUDE.md = For the team
CLAUDE.local.md = Just for you (in that project)
~/.claude/CLAUDE.md = For all your projects