Expanded and Adapted from Columbia University Libraries (2010) "Georeferencing an image in ArcGIS," Accessed August 2, 2010 from http://www.columbia.edu/cu/lweb/indiv/dssc/eds/georef.html All information indicated by an asterisk (*) is taken directly from the Columbia University tutorial without change. Other items may have been changed or adapted as necessary.
Georeferencing is the process of aligning spatial data (layers that are shape files: polygons, points, etc.) to an image file such as an historical map, satellite image, or aerial photograph. This document describes the basic steps for Georeferencing an image using ArcGIS.*
Click on View → Toolbars → Georeferencing
Add a Georeferenced Basemap to your new Map Project. We recommend adding the ESRI Imagery World 2D Map or ESRI Street Map World 2D from the ESRI servers.
Add the image you want to Georeference to your map project. Raster images - such as .jpg, .tiff, or .png files (all of these are image file types), are actually made up of multiple layers. Click once on the name of the image file and then add it to your map project. If you double click on the image file when using the Add Data feature in ArcMap, you will see something like this:
Add Control Points icon
This tool allows you to georeference the image:
If you would like to input x and y coordinates as an alternative to the method mentioned above, after placing a cross mark on a location right click on it and enter in the coordinates.
Note: it is a good idea to zoom in on your image when adding control points for better accuracy.
For every set of control points you create, an entry is created in a table that records the original coordinates, the control point coordinates, and the residual error. Access the table by choosing the View Link Table icon from the Georeferencing toolbar
Entries in this table can be deleted one at a time (highlight the entry in the table and click the delete icon) thus making corrections is easy.
Depending on the number of control points you have, from the Georeferencing table you can perform either a 1st, 2nd, or 3rd order transformation. The transformations compare the coordinates of the source image with the control points creating two least-square-fit equations to translate the image coordinates into map coordinates.
A 1st order transformation shifts the image up, down, right, or left, stretches the image larger or smaller, or rotates the entire image
The 2nd and 3rd order transformations fit higher order polynomial equations to the data, allowing points to be shifted in a non-uniform manner
Most of the time either a 1st or 2nd order will suffice, try all three and choose the one that works best
When you are satisfied with the georeferencing process, three options for saving changes are offered: