Pre-requisites:
Permission as mentioned below, on the project template in which distribution groups are to be defined:
To manage the project template, 'Admin' permission assigned to you, your organization or a user group in which you are a member.
Below are the steps to define distribution groups in a project template:
1. In 'Projects' area, navigate to the project template where distribution groups need to be defined.
2. Right click on the required project template and select 'Edit' then select 'Distribution Groups'.
Alternately, in the thumb view, do a mouse hover on the project template thumbnail and click on 
icon. A layered page opens. Click on 'Distribution Groups'.
3. It opens the 'Manage Distribution Groups' page with ability to add, amend and deactivate the distribution groups and its permissions.
4. Follow the steps as required to define distribution groups in a project (See step 3 to step 11).
5. In case you need to manage distribution in bulk, follow the steps required to manage distribution groups in bulk on a project.
Next Article: Define File Statuses (in a Project Template)