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In The Single UNIX Specification, Version 2 http://www.opengroup.org/onlinepubs/007908799/xns/syssocket.h.html claims that the param value of SO_REUSEADDR in setsockopt means: "Reuse of local addresses is supported".

Can some clarify me that phrase?

+4  A: 

See this.
Also a relevant question on stackoverflow.

Neeraj