Theorem: If $\nu:F\to\mathbb R\cup\{\infty\}$ is a valuation of a functional field, then the set $$\mathfrak O_{\nu}=\{x\in F: \nu(x)\geq 0\}$$ is a local ring with maximal ideal $$\mathfrak M_{\nu}=\{x\in F: \nu(x) > 0\}$$
and a quotient field $F$.
If the valuation is discrete then $\mathfrak O_{\nu}$ is a discrete valuation ring and an arbitrary parameter $t$ of $\mathfrak O_{\nu}$ generates the maximal ideal $\mathfrak M_{\nu}$.
Proof: Assume that $\mathfrak O_{\nu}$ is a local ring with maximal ideal $\mathfrak M_{\nu}$ and a quotient field $F$. I have no doubts.
"...If $\nu:F\to\mathbb R\cup\{\infty\}$ is a discrete valuation then $\nu[F^*]=(d\mathbb Z,+)$ for some $d\in\mathbb R^+$. Assume $t\in F^*$ is such that $\nu(t)=d$. We will show that $t$ is a local parameter of $\mathfrak O_{\nu}$..."
Then the proof goes on to show the representation $z=ut^m$ for any nonzero $z\in\mathfrak O_{\nu}$, and some $u\in\mathfrak O_{\nu}^*$.
Now "...If $xy\in\langle t\rangle$ for some $x=ut^m$, $y=vt^n\in\mathfrak O_{\nu}$ and $u,v\in\mathfrak O_{\nu}^*$ ... then $x\in\langle t\rangle$ or $y\in\langle t\rangle$. This shows that $\mathfrak O_{\nu}$ is a discrete valuation ring with local parameter $t$.
Definition: The commutative domain $R$ with a multiplicative identity is a discrete valuation ring if an indecomposable element $t\in R\setminus R^*$ exists such for any $z\in R\setminus \{0\}$, $z=ut^m$ for some $u\in R^*$ and $m\in \mathbb N$. The element $t$ we call a local parameter.
Problem: I do not understand how from $0\not=xy\in\langle t\rangle$ and $xy\not\in\mathfrak O_{\nu}^*\Rightarrow x\in\langle t\rangle$ or $y\in\langle t\rangle$ follows that $t$ is indecomposable. In more detail if $t=t_1t_2$ then $t_1\in\langle t\rangle$ or $t_2\in\langle t\rangle$, but how come then $t_1\in \mathfrak O_{\nu}^*$ or $t_2\in \mathfrak O_{\nu}^*$.
Any help would be appreciated.
Your result comes from the following:
Exercise: In a domain $R$, a principal ideal $(a)$ being prime implies $a$ is irreducible.