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Are vertical datum transformations supported in ArcGIS?
Vertical datum transformations are supported in ArcGIS version 10.4 and above. It is possible to apply a vertical datum transformation using the Project tool. For information on how to apply a vertical datum transformation in ArcMap, refer to the following knowledge-base article: FAQ: How do I apply a vertical datum transformation in ArcGIS Desktop?
While it is possible to define the vertical coordinate system information for z-coordinates of several data formats in ArcGIS 10.3 and previous releases, vertical datum transformations are not supported in these releases.