Compression set in the Raster Storage Environment Settings is not working for the Mosaic to New Raster model tool

Description

The Raster Storage Environment Settings can be set for geoprocessing tools that have a raster dataset as an output. One of the storage settings available is the compression setting.

When using the Mosaic to New Raster model tool, the compression setting is not working.

Cause

This tool is based on the Create Raster Dataset tool. By default, the Create Raster Dataset tool is set with LZW compression.

Solution or Workaround

Note:
If the LZW compression is acceptable, continue to use the Mosaic to New Raster model tool.

1. Use the Create Raster Dataset tool to create an output raster dataset within a personal or file geodatabase by navigating to ArcToolbox > Data Management Tools > Raster.
2. Click the 'Compression (optional)' drop down and select the appropriate compression.
   
   
3. Once the raster dataset has been created, mosaic the raster datasets via ArcToolbox > Data Management Tools > Raster > Mosaic.
4. Specify the Target Raster as the raster dataset.