Specifying arguments in gradlew

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I see that arguments can be specified in gradlew shell script:

# Add default JVM options here. You can also use JAVA_OPTS and 
    GRADLE_OPTS to pass JVM options to this script.
DEFAULT_JVM_OPTS="-Xmx5120M"

Given all the other ways of passing args, where does this one rank in terms of precedence? I could not find any documentation on this here