Setting the raster compression in the environment settings

In addition to setting the compression for the raster dataset, you can also set the compression for the .ovr pyramids.See Pyramid compression Environment settings.

Steps:

1. Click Geoprocessing on the Main menu of the application you are using and click Environments.
2. Click Raster Storage.
3. Click the Compression drop-down arrow and click the compression you want to use.
4. If JPEG or JPEG 2000 is selected for the compression type, type a value for compression quality.

   All raster dataset results created in a file or ArcSDE geodatabase will be compressed in the manner specified.

5. Click OK to close the Environment Settings dialog box.