Locally-managed tunnels
Cloudflare recommends creating a remotely-managed tunnel for most use cases. Remotely-managed tunnels store their configuration on Cloudflare, which allows you to manage the tunnel from any machine using the dashboard, API, or Terraform.
As an alternative workflow, you can create a locally-managed tunnel by running cloudflared tunnel create <NAME> on the command line. Tunnel configuration is stored in your local cloudflared directory. Locally-managed tunnels are intended for specific scenarios such as local development, testing, or legacy configurations.