When you turn on demand loading with copy, you can control where copies of externally referenced drawings are placed.
When you turn on demand loading with copy, the XLOADPATH system variable can be used to indicate the path where copies of externally referenced drawings are to be placed. The path you specify remains in effect for all drawing sessions until you indicate a different path. If no value for XLOADPATH is specified, the temporary file copies are placed in the standard folder for temporary files.
If you find that referencing drawings over a network is slow, it is recommended that you set XLOADPATH to reference a local folder, and set XLOADCTL to 2 so that the externally referenced files are demand loaded from your local machine. Conversely, to minimize the number of temporary files created by multiple users referencing the same drawing, those users can set XLOADPATH to point to a common folder. In this manner, multiple sessions of the program can share the same temporary copies of reference drawings.
You can set XLOADPATH in the Application Preferences dialog box, Application tab, Temporary External References File Location and indicate the path where copies of externally referenced files are to be placed.