Create Separate Layers by Category

Question

I'm trying to create a layer for each county (based on a layer of all counties) and join only those census tracts located in that county. However, the result I'm getting is a layer named for each county but has all counties and census tracks.

coFC = r"C:\TenCounties" 
coField = "County_Name" 
censusFC = r"C:CT.shp"

# Get a unique list of the counties
values = [row[0] for row in arcpy.da.SearchCursor(coFC, (coField))]
list_of_counties = set(values)

# Create a feature layer for the Census Tracts
arcpy.MakeFeatureLayer_management(censusFC, "lyr_Census")

for county in list_of_counties:
    print county
    # Create a feature layer that contains just the current county
    newout_name = arcpy.ValidateTableName(county)
    arcpy.MakeFeatureLayer_management(coFC, newout_name, "\"County_Name\" = '{0}'".format(county))
    # Select the census tracts that are located in the current county
    arcpy.SelectLayerByLocation_management("lyr_Census", "INTERSECT",    newout_name)
    #Create a layer for each County
    rcpy.CopyFeatures_management(coFC, "lyr_" + newout_name)

Answer 1

As mentioned twice in comments, you're using your input feature class as your export. You want to use your selected features instead I'm assuming.

Change:

rcpy.CopyFeatures_management(coFC, "lyr_" + newout_name)

to:

arcpy.CopyFeatures_management("lyr_Census", "lyr_" + newout_name)

You're not actually creating a layer here though. You're creating a feature class. If you instead want a .lyr file, use:

arcpy.SaveToLayerFile_management ("lyr_Census", "lyr_" + newout_name + ".lyr")

You'll probably want to set the workspace (arcpy.env.workspace) to the folder or geodatabase you wish your layers or feature classes to be exported to as well.