Library exists but I get message 'not found'

I get this compile message message about the line

#include <VarSpeedServo.h> // Uses the VarSpeedServo library

"VarSpeedServo.h: No such file or directory"

Yet that file is in at least one location:
C:\Users\terry\Dropbox\Electronics\Arduino\SKETCHES\libraries\VarSpeedServo\VarSpeedServo.h
together with many other libraries.

How does the IDE find these libraries anyway? I have libraries in several other locations, including these
C:\Program Files (x86)\Arduino\hardware\arduino\avr\libraries
C:\Users\terry\AppData\Local\Arduino15\staging\libraries

I seem to recall reading that there is an Environment or System variable but can so far not find any reference to it here or in other Arduino documenation?

I've definitely run many sketches in the past containing this particular library, so its puzzling.

Terry

Sorted! I must have reorganised my folders, as the one specified in Preferences was no longer correct.

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