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System DesignMedium· RAG· Data Governance· Federation

A director wants to merge four departmental RAG systems...

A full merge is not an option if it violates legal requirements. The correct approach is to maintain separate indices for departments with strict data residency or access rules, then implement a federated query-time router. This allows the system to hit only the relevant subsets of data per request, satisfying legal requirements while still achieving some of the projected cost savings.

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