Each Web reference in your project interacts with a proxy class that is used to access the Web service. You can use the Web reference URL property to specify the URL to the XML Web service. In ASP.NET 1.1, a Web reference can use either a static URL or a dynamic URL. In ASP.NET 2.0 and later, a Web reference obtains the URL dynamically. For more information, see Locating Web Services.
When you create a Web reference in Visual Studio using the Add Web Reference dialog box, this property is set by default to the URL of the XML Web service you select, which is a static URL. If you leave the URL behavior set to the default value of static, the proxy class sets the URL property using a hard-coded URL when you create an instance of the class.
If you set the URL behavior of the Web reference to dynamic, the application obtains the URL at run time from the appSettings element of your application's configuration file.