Orthorectifying a raster dataset displayed in ArcMap

You can permanently orthorectify your image using the Create Ortho Corrected Raster Dataset tool or by exporting your orthorectified on-the-fly raster dataset layer using the ArcMap Export Raster dialog box, found by right-clicking the raster in the table of contents.

Steps:

1. In ArcMap, click the Add Data button to add the raster dataset that has rational polynomial coefficients (RPCs).
2. Right-click the raster dataset in the table of contents and click Properties.
3. Click the Display tab.

   If the raster dataset has RPCs, the Orthorectification using elevation option is active.

4. Check the Orthorectification using elevation check box.
5. Choose the DEM orthorectification type, and then click the browse button to choose your DEM. Although the Constant Elevation orthorectification type is available, the accuracy will be very low; a low-resolution DEM, such as SRTM, will usually be more accurate than the constant elevation option.
6. Most elevation datasets, such as USGS NED or ArcGIS Online World Elevation, are orthometric heights, so it is usually necessary to check the Geoid check box for compatibility with satellite RPCs that require ellipsoidal heights.
7. Additionally, satellite imagery is usually referenced to elevation datasets with vertical units in meters. If your elevation uses vertical units other than meters, you need to enter an appropriate Z Factor to rescale your units to meters. For example, if your vertical units are in feet, your Z Factor will be 0.3048.
8. Finally, if your elevation data includes a vertical adjustment above or below the reference height (which is sea level for orthometric heights), you should specify the Z Offset to compensate.
9. Click OK to run the tool.