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I have two displays. Mac OS X frequently "forgets" the digital arrangement of the monitors and defaults them to a horizontal side-by-side arrangement. This does not correspond to the physical arrangement of the monitors.

In this arrangement, my desktop is extended upwards, not to the left or right.

How can I save the arrangement?

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I find this too, and it seems, although I'm not sure about this yet, that if you change resolution (by playing a game fullscreen for example) that causes it to forget next time its reconnected. This is clearly an OS bug, but if we can get a bit more detail about when it happens maybe Apple can find it and fix - it's been like this for a loooong time! –  Peter Bagnall Jul 8 '12 at 9:27
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1 Answer

Stay is a pretty cheap app who's primary purpose is to save default positions for applications of screen, and automatically be able to rearrange them to this default state.

However, it has multiple display support, and as a side effect, it can be used to restore previously used display arrangements.

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