I wanted to know in a domain environment if a Layer 3 configuration switch would all workstations still communicate locally even with network outage. The situation is 5 pc's plugged in on layer 3 switch with static IP addresses on each and one pc has a database shared out that all other pc's need to communicate even when network outage on WAN is down. There is no domain controlller locally due to monthly support cost.
Yes, the 5 PCs you have locally configure, they all can talk to each other even when the WAN is down as long as they are all in the same subnet and vlan. The only issue you could have is if the the domain controller is not local, then these PCs will not be able to authenticate when the WAN is down. If there is no need for authentication than you are fine.