How To: Create low precision feature classes
All feature classes and feature datasets created in ArcSDE 9.2 or 9.3 geodatabases, using ArcGIS 9.2 and 9.3 respectively, have high precision spatial references. Instructions provided describe how to create low precision layers in ArcSDE 9.2 or ArcSDE 9.3.
Once the data is in high precision, there is no supported method to migrate it to low precision. This can be a limitation when many ArcSDE 9.1 installations still exist and data needs to be migrated between version 9.2 or 9.3 and version 9.1 instances.
In a pre-9.2 geodatabase that has been upgraded to version 9.2 or later, existing feature datasets and stand-alone feature classes are still low precision. Their spatial references must be upgraded separately using the Upgrade Spatial Reference command or geoprocessing tool. Because of this, new feature classes created within an existing low precision feature dataset are also created with low precision.
For more information on this and other methods of working low precision data in ArcGIS 9.2 or later releases, see the help topic on: Working with pre-9.2 spatial references.