Store passwords using reversible encryption
Verified with Windows Security Options 25H2 — updated on July 25, 2026
Security policy
This is a Security Options policy (Windows Settings > Security Settings), applied by the security engine — not an Administrative Template (ADMX). In GPMC/gpedit it is configured under Local Policies > Security Options.
Path in the GPO console
Computer Configuration\Windows Settings\Security Settings\Account Policies\Password Policy Description
This security setting determines whether the operating system stores passwords using reversible encryption. This policy provides support for applications that use protocols that require knowledge of the user's password for authentication purposes. Storing passwords using reversible encryption is essentially the same as storing plaintext versions of the passwords. For this reason, this policy should never be enabled unless application requirements outweigh the need to protect password information. This policy is required when using Challenge-Handshake Authentication Protocol (CHAP) authentication through remote access or Internet Authentication Services (IAS). It is also required when using Digest Authentication in Internet Information Services (IIS). Default: Disabled.
Local security policy
ClearTextPassword This setting has no registry key. It is stored in the local security database (LSA) and is configured through the Group Policy console or secpol.msc.