Use this tool for creating a hole within your polygon, or for cutting out an overlapping polygon.
1. You will need at least two overlapping polygons for this feature to work.
2. Click on the Drawing & Measurement tab and open the Edit drawing menu by clicking on the down arrow.
3. Select Clip Polygon.
4. Select the master polygon (M) as the one you want edited.
5. Click on Done.
6. Select the polygon you want for cutting out a hole. (H)
7. Click on Done.
8. Now using the Erase* tool, Delete polygon (H).
(The Erase tool is available from the Edit menu.)
Example of an edited Polygon with the hole cut out.