I was creating a WCF in Visual Studio 2012 using C# as the programming language and when I call SharePoint server object model in the WCF there was an exception saying The Web application at "" could not be found.
Solution Background
Its because IIS hosted WCF sites use ApplicationPoolIdentity as its user. This is not authorized to SharePoint farm. So we have to give farm administrators credential in order to access SharePoint server.
Solution
Open IIS
Go to "Application Pools"
Click on your WCF Service site
Click on "Advanced Setting"
Click the corner "Identity" under Process Model in order to change the identity
Select "Custom account" and click "Set"
There give your farm administrator user name and password.