Locations for <Project>
This field will contain a list of any Locations that have been assigned to the current project. This field may contain inactive Locations.
When a master Location is inactivated, it will remain available and active for project level assignments and plans. It can simply no longer be associated with any new projects going forward. Should you un-assign an inactive Location -- you will not be able to re-associate it with a project (without having to first re-enable it).
If the current project has a Default Location specified, any project level list of Locations must contain the Default Location value. A project level list of Locations is not required when you have a Default Location specified for a project, however, if you do want to specify a custom project level list of Locations it will need to include the project's Default Location (if one had already been specified).