Answer Posted / leena bejoy

Any table with name starting with '#' is automatically put
into tempdb database.
Temp tables allow developers to create and scan tables
within a stored procedure - and
have the tables totally isolated from all other database
connections. This is very
valuable when results need to be processed several times
within a loop, or when
a complex result set is expected (like a crosstab). Note
that temp table transactions
are logged within tempdb (exception: select into create
statements).

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