Select the Text Tool (T). In your document, click and hold down the mouse button, and drag the cursor to create a text area. Release the mouse button and type your text— it will automatically word-wrap within the boundaries of the text area that you created.
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Text word-wrapping within text area boundaries
You can adjust the size and position of the text area by dragging the bounding box handles, as shown in the example below, while the Text Tool (T) is selected.
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Adjusting the text area
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