The password (with AirWatch Connector) authentication method and the Password (Local Directory) authentication method where configured when you installed and configured the VMware Identity Manager service with AirWatch.

The local directory password authentication is used to authentication the VMware Identity Manager service administrator. The local directory password is associated with the system domain. When admins log in to the service, they select the system domain and enter the password that was configured during the AirWatch installation.

You can view the configuration from the Identity & Access Management > Authentication Methods page.