Yep.
[Basic Explanation bit] A router is so-called because it maintains a connection to the LAN (local area network, i.e. your house), and the WAN (Wide Area Network, i.e. the internet), and it routes traffic accordingly.
Computers see this as a gateway. When you set the IP configuration of a computer, you set its IP address (e.g. 192.168.1.5), the subnet mask (on a private network this will be 255.255.255.0), and the gateway.
What the subnet mask does is it masks (hides) the addresses that are not on the local subnet (your LAN). The number is between 0 and 255, where zero is 'no mask: all variations valid' and 255 is 'no variations valid'. So, in the above example, you're saying that addresses from 192.168.1.0 to 192.168.1.254 are on the LAN.
The gateway setting tells the machine where to route traffic to that is defined (by the subnet mask) as not being on the LAN. This should always be set to the address of the LAN's router, because if you access a site not on the LAN, you need to route that request to the device that is capable of routing the request outside of the LAN.
Make sense?[/Basic Explanation bit]