URL rewriting: last versus break

[Thomas]

>> Okay, so "break", means "if regexp matches the request, then rewrite
>> the request and then stop right here and serve the request as being a
>> static file".
>
> ... and then stop right here (in this location) and serve the request
> by the location's handler (static/proxy/fastcgi/etc)
>
So rewrite rules with break must be declared inside a location,
whereas rewrite rules with last have to be declared outside locations?