Why a non-final “local” variable cannot be used inside an inner class, and instead a non-final field of the enclosing class can?

The difference is between local (method) variables vs class member variables. A member variable exists during the lifetime of the enclosing object, so it can be referenced by the inner class instance. A local variable, however, exists only during the method invocation, and is handled differently by the compiler, in that an implicit copy of it is generated as the member of the inner class.

Without declaring the local variable final, one could change it, leading to subtle errors due to the inner class still referring to the original value of that variable.

The reason is that Java doesn't support closures. There are no JVM commands to access local variable from outside the method, whereas fields of class can be easily accessed from any place.

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