In older versions of Oracle, if you did not assign a default tablespace or a temporary tablespace to a user, the user's objects and temp segments were created in the SYSTEM tablespace (by default). The SYSTEM tablespace should only be used for your Data Dictionary and allowing other segments to be created in this tablespace is poor practice.
In Oracle 9i and 10g, you can assign a system-wide default tablespace so that if you do not explicitly assign a default tablespace to a user, they will get the non-SYSTEM tablespace default.
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