The System Folder is normally located directly below the root directory in the filesystem hierarchy, but does not need to be. The Mac OS identifies the "System Folder" by undocumented characteristics that are independent of its name (it has different names in non-English versions of the Mac OS), or its location in the directory hierarchy. The Macintosh Finder displays this "blessed" folder with a special icon. A "live" System Folder can freely be moved to any location in the directory hierarchy while the OS is operating, and it will continue to operate with no problems after the folder has been moved and after the system is restarted with the folder in its new location.
