How do I create a linetype with text that is similar to the waterline linetype or sanitary sewer linetype?
There are tools available for creating Linetypes & shapes used within linetypes that can be found at:
Express Tools Tab of Ribbon>Tools Panel>Flyout>Make Linetype. & Make Shape.
For additional information hover your cursor over these commands & press F1 for help which will direct youu to the Express Tools Help for.
This should be available for versions 2011 & up & possibly older versions.
In addition to the express tool you'll want to read the help system topic for custom linetypes with text. Once you learn the syntax it is easy to open a linetype file, copy a linetype and change the parameters to create new styles.