At the risk of adding to confusion, I want to throw in some input, I'm sure it mostly depends on how the compiler implements references, but in the case of gcc the idea that a reference can only point to a variable on the stack is not actually correct, take this for example:
#include <iostream>
int main(int argc, char** argv) {
// Create a string on the heap
std::string *str_ptr = new std::string("THIS IS A STRING");
// Dereference the string on the heap, and assign it to the reference
std::string &str_ref = *str_ptr;
// Not even a compiler warning! At least with gcc
// Now lets try to print it's value!
std::cout << str_ref << std::endl;
// It works! Now lets print and compare actual memory addresses
std::cout << str_ptr << " : " << &str_ref << std::endl;
// Exactly the same, now remember to free the memory on the heap
delete str_ptr;
}
Which outputs this:
THIS IS A STRING
0xbb2070 : 0xbb2070
If you notice even the memory addresses are exactly the same, meaning the reference is successfully pointing to a variable on the heap! Now if you really want to get freaky, this also works:
int main(int argc, char** argv) {
// In the actual new declaration let immediately de-reference and assign it to the reference
std::string &str_ref = *(new std::string("THIS IS A STRING"));
// Once again, it works! (at least in gcc)
std::cout << str_ref;
// Once again it prints fine, however we have no pointer to the heap allocation, right? So how do we free the space we just ignorantly created?
delete &str_ref;
/*And, it works, because we are taking the memory address that the reference is
storing, and deleting it, which is all a pointer is doing, just we have to specify
the address with '&' whereas a pointer does that implicitly, this is sort of like
calling delete &(*str_ptr); (which also compiles and runs fine).*/
}
Which outputs this:
THIS IS A STRING
Therefore a reference IS a pointer under the hood, they both are just storing a memory address, where the address is pointing to is irrelevant, what do you think would happen if I called std::cout << str_ref; AFTER calling delete &str_ref? Well, obviously it compiles fine, but causes a segmentation fault at runtime because it's no longer pointing at a valid variable, we essentially have a broken reference that still exists (until it falls out of scope), but is useless.
In other words, a reference is nothing but a pointer that has the pointer mechanics abstracted away, making it safer and easier to use (no accidental pointer math, no mixing up '.' and '->', etc.), assuming you don't try any nonsense like my examples above ;)
Now regardless of how a compiler handles references, it will always have some kind of pointer under the hood, because a reference must refer to a specific variable at a specific memory address for it to work as expected, there is no getting around this (hence the term 'reference').
The only major rule that's important to remember with references is that they must be defined at the time of declaration (with the exception of a reference in a header, in that case it must be defined in the constructor, after the object it's contained in is constructed it's too late to define it).
Remember, my examples above are just that, examples demonstrating what a reference is, you would never want to use a reference in those ways! For proper usage of a reference there are plenty of answers on here already that hit the nail on the head
int &x = *(int*)0;
on gcc. Reference can indeed point to NULL. – Calmarius Aug 13 '12 at 9:00