Restore Database from local disk

http://msdn.microsoft.com/en-us/library/ms186858.aspx
RESTORE DATABASE AdventureWorks2012
   FROM DISK = 'Z:\SQLServerBackups\AdventureWorks2012.bak'
   WITH FILE = 6
      NORECOVERY;
When you specify FROM DISK, is the drive letter relative to the server you are connecting to?  
In other words, if your on a workstation with SSMS and connected to a server.  If youre running a restore,
then the paths specified are relative to the server or your own local system?