From Wiki explanation;valve editor is:
Valve Hammer Editor, formerly known as Worldcraft and now
commonly called Hammer, is Valve
Software's map creation program for their game engine, Source. Old versions of Worldcraft also
supported Quake and Quake II. Versions prior to 4
supported exclusively Goldsrc,
Source's predecessor. The current version supports both Source and
GoldSrc, and can only be accessed via a free download of the Source SDK.
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Configuration steps for valve hammer editor; click here and follow the screenshots.