Follow the steps below to create a document library:

1. From the Site Actions menu, select New Document Library.

2. Fill out the name and description for the new library.

3. In the Navigation section, choose the appropriate option if you want to have the new library available from the quick launch bar within the site.

4. In the Document Version History section, choose if you want to have a version created each time you edit a file in the new library.

5. Specify a Document Template for all new files created in the library under the Document Template Section.

6. Click Create