The New Grails Application wizard creates a new containing a basic Grails application. The Grails application is created by the IDE: it runs the "grails create-app" command for you. Before you can use this wizard, you need to set the location of your Grails distribution in the Options window, within the Miscellaneous panel's Grails tab. You open the New Grails Application wizard by opening the New Project wizard and selecting the Grails Application template from the Groovy category.
In the Name and Location page, you have to set the following properties:
Click Finish to let the IDE run the "grails create-app" command, which will generate the Grails application with the values specified above.