How to Create a New Shapefile

1. From within ArcMap, click the ArcCatalog button.
2. From within ArcCatalog, click on the folder that will contain the new shapefile.
3. From the File menu, select New, Shapefile.
4. Type in the name of the new shapefile.
5. Select a feature type for the new shapefile. (For example: Point, Polyline, Polygon or Multipoint)
6. Click the Edit button to select a coordinate system.  (If you want latitude and longitude values, select a Geographic Coordinate System.)
7. Click OK to create the new shapefile.
8. Close ArcCatalog and return to ArcMap.
9. From within ArcMap, click the Add Data button. 
10. Browse to and click on the new shapefile.
11. Click Add.
12. Before editing a shapefile, you must activate the Editor toolbar.
13. From the View menu, select Toolbars, Editor.
14. From the Editor drop-down menu, select Start Editing.
15. From the Start Editing box, select the folder that contains the shapefile to be edited.
16. Click OK.
17. From the Editor's Task drop-down menu, select Create New Feature.
18. From the Editor's Target drop-down menu, select the new shapefile to be edited.
19. From the Editor toolbar, click on the Sketch tool.
20. From within the Data Frame, click the first point, move to the second point and click again...
21. When the new shape is completed, double-click the last point to finish.
22. From the Editor drop-down menu, select Stop Editing.
23. Click Yes when asked if you would like to save your edits.
    

In the example provided, the "Locations" shapefile is created.

Video of Example

  click on image for video