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Oracle Database normalizes all new TIMESTAMP WITH LOCAL TIME ZONE data to the time zone of the database when the data is stored on disk.Oracle Database does not automatically update existing data in the database to the new time zone. Therefore, you cannot reset the database time zone if there is any TIMESTAMP WITH LOCAL TIME ZONE data in the database. You must first delete or export the TIMESTAMP WITH LOCAL TIME ZONE data and then reset the database time zone. For this reason, Oracle does not encourage you to change the time zone of a database that contains data.
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it controls how things with local time zones are physically stored on disk.
http://docs.oracle.com/cd/E11882_01/server.112/e26088/statements_1004.htm#i2197908 http://docs.oracle.com/cd/E11882_01/server.112/e26088/statements_5004.htm#i2082011