Quick & simple: Have you hosted the service yet?
I have been in the situation where you’re absolutely certain the endpoint of a certain WCF service from another solution is on this specific address and everything should be fine, but the acursed servicereference just won’t add. VS complains about an actively refused connection (blabla) and you start pulling hair. Well… Wait before you’re bald.
There are a number of reasons why this error message could be popping up (and I won’t be discussing them all right now), but the trap I fell into in the beginning the most was that I failed to check if the service is hosted. And this is the situation I want to discuss in this post.
You need to either host the service on a fully qualified webserver (like IIS) or you need to run the service in the developer’s webserver from VS. You can do the latter by right clicking in the other solution on the serviceproject and choose ‘debug’ and then ‘Start new instance’.
Now watch how compliant your beauty is as you add the service reference and fire up your clientapplication. Enjoy!