The type or namespace name 'Entity' does not exist in the namespace 'System.Data'
Hi this post is very misleading, if your reading this 2 years on.
With using EF6 and .net 4.5.1 in VS 2013 I have had to reference the following to get this to work
using System.Data.Entity.Core.EntityClient;
a little different to before,
this is more of a FYI for people that come here for help on newer problems than a answer to the original question
Right-click on the Solution from the Visual Studio Solution Explorer click the Manage Nuget packages for solution and install the EntityFramework