Creating a database is the first step in any database project. It involves defining the overall structure where your data will reside. The `CREATE DATABASE` statement is a crucial part of the Data Definition Language (DDL) in SQL. This statement specifies the name of the new database and, optionally, other parameters like the storage location or character set. Once created, the database can be populated with tables, which hold the actual data. Think of a database as a container for your data, and the `CREATE DATABASE` command as the act of creating that container. Different database systems might have slight variations in the syntax, but the core concept remains the same. This command is essential for organizing and managing data effectively.