Do I need a GPO assigned for my downstream server?

I've configured a WSUS downstream server in California to be a REPLICA for my WSUS upstream server in Illinois. For my upstream server in IL, I have Computer Groups for my local servers and workstations, with GPO's assigned to each, as they reside in separate OU's, with "Specify intranet Microsoft update service location" set to http://<upstream_server>:8530

My questions are:

1) Being set up as a replica, should I still create Computer Groups for my downstream Servers and Computers on the Downstream server in CA, or on the Upstream server in IL?

2) And, if my Computer Groups on my upstream get replicated to my downstream and appear in the WSUS console, I'm thinking that the GPO for my CA servers and WS's should be pointing to http://<upstream_server>:8530 in IL, and not the downstream server in CA for "Specify intranet Microsoft update service location"??

Thanks.
nurturer69Asked:
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MaheshConnect With a Mentor ArchitectCommented:
WSUS will not replicate groups to downstream or upstream servers
Both servers are independent and only windows updates can be fetched between them
You need to setup separate computer groups on both servers OR
U need separate GPOs for both servers
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