Before you start to perform geoprocessing tasks on your data, you should set up any relevant environment settings. The application Environment Settings dialog box allows you to change the default application settings that are used when you run geoprocessing tools.

To set the current workspace, right-click the ArcToolbox window and click Environments. The Environment Settings dialog box opens. Click General Settings to expand its contents. Click the Current Workspace parameter and type the path to the folder that you want to work in. In this example the folder is the GP_Tutorial folder, at C:\GP_Tutorial. You can also click the Browse button and navigate to this location. Click OK.

Now that the current workspace is set, you can simply type the name for the input and output parameter values. Data will be taken from, and placed in, this location, saving you time typing (or browsing to) the location of data each time you run a tool.

Note: You can specify environment settings for the application that will apply to all tools. Alternatively, you can set environment settings for a specific model or for a process within a model. Environment settings for the application are used by default unless they are specified for a model or for a process within a model. Settings for a process will override settings for the model and for the application. Settings for a model will override settings for the application.