Can i use RewriteRule inside Location and Files sections in Apache httpd?

Issue

• Does RewriteRule is permitted in <Location> and <Files> sections in Apache httpd?
• When i use the simple RewriteRule as follows in <Location> sections it doesn't work, and when used the same inside <Directory>, it works fine. Why?

<Location "/">
RewriteEngine On
LogLevel info rewrite:trace4
RewriteRule ^/foo/(.*)$  /$1 [P,L]
</Location>