.Htaccess file not working, does this have anything to do with AllowOverride?

I have a local installation of XAMPP, whatever directives I put inside .htaccess it does not affect anything, then in Apache Server Config file I found AllowOverride none. Do you think AllowOverride none is the reason that changes made in .htaccess are not taking any effect? Also same .htaccess file works fine on a web hosting I am using.