You cannot. GAE has a readonly file system. You need to create run with 
 web2py.py in order to create a new app.

On Tuesday, 3 September 2013 13:57:52 UTC-5, Derek wrote:
>
> I try to create a new simple application on my local GAE instance (I 
> clicked 'run' in GAE since that's the only one that has admin). I get this 
> traceback:
>
> Traceback (most recent call last):
>   File "C:\Temp\web2py_src\web2py\gluon\admin.py", line 179, in app_create
>     os.mkdir(path)
>   File "C:\Program Files 
> (x86)\Google\google_appengine\google\appengine\tools\devappserver2\python\stubs.py",
>  line 39, in os_error_not_implemented
>     raise OSError(errno.ENOSYS, 'Function not implemented')
> OSError: [Errno 40] Function not implemented
>
>

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