The orapwd password file is required for all remote database administrative connections to an Oracle database using SYSDBA or SYSOPER. ORAPWD is an Oracle utility that generates a password file for remote connections.
When using ORAPWD, one should use appropriate naming convention, which includes orapw$ORACLE_SID. The password file must be located in $ORACLE_HOME/dbs in UNIX and in $ORACLE_HOME\database in Windows. The init.ora file must also contain REMOTE_LOGIN_PASSWORDFILE parameter, set to SHARED or EXCLUSIVE.
Example:
orapwd file=orapwdTEST password=systestpass entries=20
The entries option determines how many users can be stored in password file. To see what users are utilizing the password file,
SQL> select * from v$pwfile_users;
Reference: Sybex OCP 10g Admin Study Guide
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