Specify the EXTENT MANAGEMENT LOCAL clause in the CREATE DATABASE statement to create a locally managed SYSTEM tablespace. The COMPATIBLE initialization parameter must be set to 9.2 or higher for this statement to be successful. If you do not specify the EXTENT MANAGEMENT LOCAL clause, by default the database creates a dictionary-managed SYSTEM tablespace. Dictionary-managed tablespaces are deprecated.
A locally managed SYSTEM tablespace has AUTOALLOCATE enabled by default, which means that the system determines and controls the number and size of extents. You may notice an increase in the initial size of objects created in a locally managed SYSTEM tablespace because of the autoallocate policy. It is not possible to create a locally managed SYSTEM tablespace and specify UNIFORM extent size. When you create your database with a locally managed SYSTEM tablespace, ensure that the following conditions are met:
A default temporary tablespace must exist, and that tablespace cannot be the SYSTEM tablespace.
To meet this condition, you can specify the DEFAULT TEMPORARY TABLESPACE clause in the CREATE DATABASE statement, or you can omit the clause and let Oracle Database create the tablespace for you using a default name and in a default location.
You can include the UNDO TABLESPACE clause in the CREATE DATABASE statement to create a specific undo tablespace. If you omit that clause, Oracle
Database creates a locally managed undo tablespace for you using the default name and in a default location.