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I am running on a new dev setup for SharePoint 2010 and trying to setup some External Content types. I think that I have setup BCS correctly (since I see it running in the central administration). When I go into SharePoint designer 2010 and try to setup a new External Content Type, I get the following error:

There is no Business Connectivity Service associated with the current web context.

Am I missing something with the configuration? Why am I not able to setup a new External Content Type to point to my existing SQL database?

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The service might be running but make sure that you have associated the service with your Web Application. Go to Central Admin > Manage Web Applications > Select the Web Application > Click Service Connections in the Ribbon. In the dialog make sure that the BDC Service is checked.

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