How can I label edges of polygons?

Question

How would I label polygon features, such as Counties, by its edge in ArcMap 10.1. This is similar to what one might find in a street atlas.

For instance, have there are two counties (Lamb and Castro), at the same spot I want the labels to be inside along the boundary in the respective counties. How do I create this effect?

Answer 1

At 10.1,

The Maplex for ArcGIS extension functionality has been moved into the core ArcGIS for Desktop product and is referred to as the Maplex Label Engine.

so getting the effect you want is easy.

On the Data Frame Properties change Label Engine from Standard label Engine to Maplex Label Engine.

On the Layer Properties go to the Labels tab, open the Placement Properties and under General change Regular Placement to Boundary Placement.