ArcPy is a Python module for interacting with ArcGIS tools. The module was developed by Esri, the company that makes ArcGIS. ArcPy offers a high-level implementation of Esri's ArcObjects programming library. The best place to ask about ArcPy is our sister site GIS Stack Exchange.
ArcPy is used for customizing mapping and geoprocessing solutions within the ArcGIS 10 software. It can be accessed through the Python window of ArcMap, ArcGIS ModelBuilder as an imported script-tool, toolboxes written entirely in Python or externally through IDEs. Executing machines must have a valid installation of ArcGIS for Desktop or ArcGIS Engine to use the arcpy site package.
The following command is used to import the module into a Python script.
import arcpy
There are very large number of ArcPy Q&As at the GIS Stack Exchange. This sister site is the best place to ask questions concerning the ArcPy site-package.