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A networked XML document is comprised of chunks of data aggregated using various W3C standard inclusion mechanisms and therefore contains nodes that come from different places. The BaseURI tells you where these nodes came from.
For Document nodes, BaseURI returns the location of the XML document. For example, if the XmlDocument was loaded using the following call doc.Load("http://server/mydata.xml"), the BaseURI for the document node is http://server/mydata.xml. However, if the XmlDocument.Load(string) method is redirected by server to a different URI, BaseURI returns the original URI passed to the Load method.
This property is a Microsoft extension to the Document Object Model (DOM). For additional information on BaseURI and how it behaves with other node types, see XmlNode.BaseURI.