--- loncom/lonnet/perl/lonnet.pm	2003/08/25 17:20:09	1.405
+++ loncom/lonnet/perl/lonnet.pm	2003/08/26 04:56:30	1.406
@@ -1,7 +1,7 @@
 # The LearningOnline Network
 # TCP networking package
 #
-# $Id: lonnet.pm,v 1.405 2003/08/25 17:20:09 albertel Exp $
+# $Id: lonnet.pm,v 1.406 2003/08/26 04:56:30 albertel Exp $
 #
 # Copyright Michigan State University Board of Trustees
 #
@@ -2809,7 +2809,8 @@ sub modifyuser {
              ' in domain '.$ENV{'request.role.domain'});
     my $uhome=&homeserver($uname,$udom,'true');
 # ----------------------------------------------------------------- Create User
-    if (($uhome eq 'no_host') && ($umode) && ($upass)) {
+    if (($uhome eq 'no_host') && 
+	(($umode && $upass) || ($umode eq 'localauth'))) {
         my $unhome='';
         if (defined($desiredhome) && $hostdom{$desiredhome} eq $udom) { 
             $unhome = $desiredhome;