>>That's not true. GO just separates batches in SSMS. The creation of stored procedure must be the only thing in the batch.
>>
>>In other words, GO in the code above has nothing to do with the temp tables.
>
>DECLARE @temp INT
>SET @temp = 1
>
>GO
>
>print @temp
>
>yields:
>Msg 137, Level 15, State 2, Line 2
>Must declare the scalar variable "@temp".
>
>
>ergo my previous assertion of clear local variables is true...

If we're talking about variables, then yes, of course. But the topic of the discussion was about temp tables.