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Fine-grained password policy was introduced in Windows Server 2008 to overcome the limitation of only one password policy for a domain. Fine-grained password policies do exactly what they say on the tin, allowing system administrators to apply different password policies to groups of users in an Active Directory domain.
Prior to Windows Server 2012, it was only possible to configure fine-grained password policies from the command line. Fortunately, a graphical user interface for fine-grained password policy is included in Windows Server 2012’s Active Directory Administrative Center (ADAC).
Before you can use fine-grained password policy, make sure that your domain is set at the Windows Server 2008 domain functional level or higher. For more information on setting domain and forest functional levels, see “Raising Windows Server 2008 Active Directory Domain and Forest Functional Levels” on the Petri IT Knowledgebase.
If you double-click the Password Settings Container in ADAC, you’ll now see the new policy along with its precedence index.
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