At the service layer we start a transaction using System.Transaction
and the service method calls the DAO methods. I am not using
transactions from NHibernate. Is NHibernate aware of
System.Transactions. whether we will be able to take the adavantage of
first level cache with out using Nhibernate Transactions. Please
advice

The service method looks something like this

 using (TransactionScope scope = new TransactionScope())
      {
               //call DAO1
              //call DAO2
              //call DAO3

        scope.Complete();
      }

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