This policy setting allows you to specify a different folder location for Personal Storage Table (PST) files on user computers. ...

This policy setting allows you to specify a different folder location for Personal Storage Table (PST) files on user computers. 

If you enable this policy setting, you can specify a location for PST files on user computers.

If you disable or do not configure this policy setting, PST files are located in: %userprofile%\Local Settings\Application Data\Microsoft\Outlook on user computers.