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How would that work in SMP where there's more than 1 person playing?
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I don’t see the problem?
In single-player: passive mobs spawn when the player enters an area/loads a chunk. When the player leaves the area, the mob does not despawn, and will be loaded again the next time the player enters the area.
In SMP: passive mobs spawn when any player enters an area/loads a chunk. When all players leave the area, the mob does not despawn, and will be loaded again the next time any player enters the area.