ArcGIS for AutoCAD is a free, downloadable tool that provides AutoCAD and ArcGIS interoperability. Within the AutoCAD environment, you gain easy access to enterprise GIS basemaps published by ArcGIS Server.
In addition, ArcGIS for AutoCAD gives you the ability to prepare CAD data for use with the ArcGIS platform while leveraging your existing CAD standards.
Use ArcGIS for AutoCAD to
Streamline information sharing between GIS and CAD groups.
View live GIS maps and display GIS symbology of underlying GIS data inside AutoCAD.
Include the results of GIS analysis in AutoCAD designs.
Create, manipulate, and define how CAD data is organized and attributed as GIS content so it can be used in ArcGIS Desktop or AutoCAD.
Visit ESRI Site to know more about this
http://vid01.esri.com/winmmedia/afabuild200final_2.wmv
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