Project-scoped configuration is the appropriate mechanism for repository-specific settings that must remain consistent across collaborators. Claude Code recognizes `.claude/settings.json` as the shared project settings file and `.mcp.json` as the project-level MCP server configuration. When these files are committed to source control, every engineer receives the same definitions through the repository’s normal clone, pull, review, and versioning workflow.
Anthropic’s scope hierarchy distinguishes project configuration from user and local configuration. Files under the user scope apply to one engineer and are not automatically shared. Operating-system environment variables are also workstation-specific and require separate configuration management. Managed settings can be distributed centrally, but they are primarily intended for organization-wide security policies and controls that must be enforced by administrators; they are less appropriate when the configuration belongs specifically to one repository.
Shared configuration should contain server definitions and environment-variable references, but not plaintext credentials. Each engineer can resolve required secrets through an approved local secret mechanism while retaining identical server names, transports, arguments, and non-sensitive settings. Project MCP servers also remain subject to workspace trust and approval controls before execution.
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