If you’re seeing a credentials prompt every time you launch a local IIS or IIS Express web application that requires Windows Authentication, you’ll likely grow as tired of typing in your password as I was. To add to the annoyance, the Remember my credentials checkbox doesn’t work (nothing is saved).

The setup:

• Windows 8
• Visual Studio 2012, .NET 4.5,
• ASP.NET MVC web application
• Non domain-joined computer (it’s on my home network)
• Using a Microsoft account (FKA Live ID) as the local account
• Using IIS Express/IIS
• Windows Authentication Enabled
• Anonymous Logon Disabled

<system.webServer>
    <security>
        <authentication>
            <windowsAuthentication enabled="true" />
            <anonymousAuthentication enabled="false" />
        </authentication>
    </security>
</system.webServer>

While there are a few proposed solutions, this is the only one that worked for me so far.

1. Start Internet Explorer
2. Click the settings Menu
3. Select Internet options
4. Click the Security tab
5. Select Local intranet
6. Click Sites
7. Click Advanced
8. Add http://localhost to the Local intranet zone
9. Close.
10. Verify it’s now working.

Done.

Alternatives welcomed. :)