Utilizing only ArcMap 10, is there a way to set up a tool that will automatically detect building footprints from aerial imagery and then build a polygon on them?

It doesn't need to be incredibly accurate, but something fast and automated would help. I have no idea where to even start working on such a thing using Python, if its even possible.

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Depending on the data you're working with, you can set up training sites to do a "Supervised Classification" to extract roof lines based on their spectral signature. You'll need the Spatial Analyst extension, though.

It will kick out a raster image that you'll have to convert to polygons.

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