A planning department keeps emitting Object Storage and database resources in a nested compartment tree. Where should the Events rule live so it sees those emissions, and must the Function action live in the same compartment?

For the planning department’s nested compartment tree, create the Events rule in the compartment where the emitting Object Storage and database resources live (or in a parent that should see those children). A rule matches emissions from its own compartment and from child compartments in the hierarchy. Action resources—the Function, Notifications topic, or stream—may live in a different compartment; matching scope follows the rule’s placement and filters, not the action’s home. Always creating the rule in the tenancy root because Events is global and ignores compartment hierarchy is wrong: Events is compartment-aware, and root placement only makes sense when you intentionally want broad coverage plus tight filters. Creating the rule only in the Function’s compartment so emitters elsewhere are invisible conflates action location with emitter visibility—emitters outside the rule’s compartment (and its children) will not match that rule. Placing identical rules in every leaf because children never inherit matching inverts the model: children are visible to a parent rule; you do not need a duplicate rule per leaf solely for inheritance. Exam caveat: moving emitters into a new sibling compartment outside the rule’s subtree silently stops matches even though the Event Type filter is unchanged. Operational check: place the rule in the planning parent compartment, emit a test object create in a child compartment with emit enabled, deliver to a stream in another compartment, and confirm delivery—proving emitter hierarchy and action separation both work.