can security be set up so that users in one location can not see information for another location?

We have two locations/divisions in one company.  We do not want one location/division to be able to see anything related to the other location/division.  Is there security option that can be set up so that employees in one location do not have access to the other locations information, job management or customer information, ect?  I am new to Sage, just hired as the CFO and they have the one company set up in SAGE as two companies and I have to consolidate them every month.  They say it is the only way to keep one location from see the other locations jobs and customer information.  Is this true?