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The older method of:

dscl . -create /Users/username

doesn't work because /System/Library/LaunchDaemons/ can't be found. From what I gather, OSX Lion doesn't use this method anymore.

How can I create a new user solely from the Terminal?

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dscl . launches interactive mode for me. This should still work... – Andrew Vit Nov 22 '11 at 7:22
up vote 3 down vote accepted

They renamed the Directory Services daemon in Lion:

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