Individual settings for users on a system are stored in a hive (disk file) per user. During user login, the system loads the user hive under the HKEY_USERS key and sets the HKCU (HKEY_CURRENT_USER) symbolic reference to point to the current user. This allows applications to store/retrieve settings for the current user implicitly under the HKCU key.
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Also like the file system, PowerShell uses the concept of a current location which defines the context on which commands by default operate. The Get-ChildItem (also available through the alias ls or dir) retrieves the child keys of the current location. By using the Set-Location (or the alias cd) command the user can change the current location to another key of the registry. Commands which rename items, remove items, create new items or set content of items or properties can be used to rename keys, remove keys or entire sub-trees or change values.