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This brief article discusses the differences between labels and annotation and provides a workflow for dealing with static map labels.
Labels are only drawn at display time meaning that the physical text element is not added to the design file. In addition, labels are dynamic which means that if the property value changes, then the label will automatically update as well. Since labels are dynamic they are ideal for properties that continuously change and require updating.
Annotation text are physical text elements that are extracted from display-only labels. They are typically placed in an "annotation model" and then used as a reference. Since annotation is text, they can be manipulated like other MicroStation elements. Since annotation is static, it's important to realize that the text value will not update when the feature property is changed.
Let's take a closer look:
On the map below, the blue water utility nodes have been labeled with their ID number which is likely not going to change. For this reason they are good candidates to be converted to annotation.
From the features right-click menu, select Annotation and adjust the settings as needed. For most purposes, the default settings are just fine.