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ZEPHYR_BASE for building 9160 application

Using EmbeddedStudio_ARM_Nordic_v452_macos_x64

I am trying to build a sample for 9160-DK

I get

CMake Error at CMakeLists.txt:20 (find_package):
Could not find a package configuration file provided by "Zephyr" with any
of the following names:

ZephyrConfig.cmake
zephyr-config.cmake

Add the installation prefix of "Zephyr" to CMAKE_PREFIX_PATH or set
"Zephyr_DIR" to a directory containing one of the above files. If "Zephyr"
provides a separate development package or SDK, be sure it has been
installed.

The referenced line 20 is: 

find_package(Zephyr REQUIRED HINTS $ENV{ZEPHYR_BASE})

I think the problem may be the lack of a definition for ZEPHYR_BASE

I guess that would be ~/src/ncs/zephyr?  Where should that be set?

Thx.

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