Essentially. I've not used NetBeans like that, but if it's anything like IntelliJ, the
IDE launches a Tomcat instance and deploys the project WAR into it, whereupon Tomcat will handle the context.xml file in the normal (documented) way as part of standard deployment.
I live a different life, where while developing I manually create a Context xml file, dump it under the desired context path name manually into a copy of TOMCAT_HOME/conf/Catalina/localhost, and the
docBase points to the WAR being built in my Eclipse/Maven
target directory. But that's me and I hate WTP because it doesn't accurately reflect my entire runtime configuration. I'm using the plugin Once Known As "sysdeo" to run my Tomcat, instead.
One of the reasons I generally use Eclipse is, in fact, because I can launch one Tomcat running multiple webapps and debug them as they talk to each other and I'm into evil things like that. IntelliJ, last time I looked assumed that the project would be the sole running webapp, and that's fine for most people. I just happen to be extra devious.