What is the "On My Mac" account?

Why do "On My Mac" boxes appear in Mail, and is there any way to get rid of them for good?
In Mail 2.0.7, a triangle, signifying nested folders, has begun appearing periodically (and regularly) next to my Junk and Trash mailboxes. Clicking on the triangle reveals a pair of Junk (or Trash) mailboxes, one using our primary account name, the other using the name "On My Mac." This began happening only since changing ISPs (a month ago).
When I delete the "On My Mac" mailboxes, the Junk and Trash mailboxes lose the nested-folders triangle for several days, but then it will reappear. Yes, if there is an "On My Mac" Junk or Trash mailbox, it always has something in it, and it's always a duplicate of an email received by our regular email account.
This isn't a problem, just an inconvenience, but any help would be appreciated.
iMac G5 20" 250GB 1.5GB RAM   Mac OS X (10.4.6)   HP Deskjet 6540; OWC 300GB external firewire drive

Having an IMAP account set to store any kind of messages locally doesn't cause an On My Mac mailbox to be created. Mail creates special mailbox folders in HOME/Library/Mail/Mailboxes/ for them in such cases, but these mailboxes appear in Mail with their account name under the general Trash or Junk icons, as if they were POP account-specific mailboxes.
The only thing that causes On My Mac Trash or Junk mailboxes to be created is deleting or marking as junk messages stored in custom mailbox folders, as described by Allan.

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