For more, see Draw Tools
To activate: Edit Menu
Activate Edit Layer in order to draw and/or edit features on the current layer.
In order to edit a layer:
The layer must be set to Allow Update.
If there are any Layer Relates active, Remove Layer Relates.
Read Only should be turned off for the layer's Shapefile.
To use:
Make the desired layer current.
Activate Edit Layer
Draw / Edit tools appear on the tool bar.