Adding independent panel in ArcMap layout view?

Question

In ArcMap 9.3, I want to make a map in which I start from a wider location (for example, a country) and then, I give some zooms until one specific area.

I have all the data I need: country administrative boundaries, state/province boundaries and city boundaries (in Brazil and Paraguay).

I already got to make my first panel, but how do I plot an independent "frame/panel" into my ArcMap layout view?

I added a screenshot below, where I drew in red (paintbrush) the region I would like to zoom and plot in a separate panel.

Answer 1

I would approach this using two steps:

1. Use Insert | Data Frame to insert the number of data frames you want i.e. one for each overview, inset and main map. Add whatever layers you want for each and set suitable extents for the type of map each data frame is meant to represent.
2. Then use the Extent Indicators (probably called Extent Rectangles prior to 10.0) tab to set them (and any leader lines) as desired on each data frame - this 10.2 help page describes how to do this - which is very easy once you've done them once or twice. They work exactly the same at 10.2 as they did at 9.3 and earlier.