Security settings for this service require Windows Authentication but it is not enabled for the IIS application that hosts this service. 
  Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code.

Exception Details: System.NotSupportedException: Security settings for this service require Windows Authentication but it is not enabled for the IIS application that hosts this service.

Source Error:

An unhandled exception was generated during the execution of the current web request. Information regarding the origin and location of the exception can be identified using the exception stack trace below. 

Stack Trace:

[NotSupportedException: Security settings for this service require Windows Authentication but it is not enabled for the IIS application that hosts this service.]
   System.ServiceModel.Channels.HttpChannelListener.ApplyHostedContext(VirtualPathExtension virtualPathExtension, Boolean isMetadataListener) +15710645
   System.ServiceModel.Channels.HttpsChannelListener.ApplyHostedContext(VirtualPathExtension virtualPathExtension, Boolean isMetadataListener) +27
   System.ServiceModel.Channels.HttpsTransportBindingElement.BuildChannelListener(BindingContext context) +105
   System.ServiceModel.Channels.BindingContext.BuildInnerChannelListener() +95
   System.ServiceModel.Channels.MessageEncodingBindingElement.InternalBuildChannelListener(BindingContext context) +102
   System.ServiceModel.Channels.TextMessageEncodingBindingElement.BuildChannelListener(BindingContext context) +70
   System.ServiceModel.Channels.BindingContext.BuildInnerChannelListener() +95
   System.ServiceModel.Channels.Binding.BuildChannelListener(Uri listenUriBaseAddress, String listenUriRelativeAddress, ListenUriMode listenUriMode, BindingParameterCollection parameters) +166
   System.ServiceModel.Description.DispatcherBuilder.MaybeCreateListener(Boolean actuallyCreate, Type[] supportedChannels, Binding binding, BindingParameterCollection parameters, Uri listenUriBaseAddress, String listenUriRelativeAddress, ListenUriMode listenUriMode, ServiceThrottle throttle, IChannelListener& result, Boolean supportContextSession) +399
   System.ServiceModel.Description.DispatcherBuilder.BuildChannelListener(StuffPerListenUriInfo stuff, ServiceHostBase serviceHost, Uri listenUri, ListenUriMode listenUriMode, Boolean supportContextSession, IChannelListener& result) +499
   System.ServiceModel.Description.DispatcherBuilder.InitializeServiceHost(ServiceDescription description, ServiceHostBase serviceHost) +1937
   System.ServiceModel.ServiceHostBase.InitializeRuntime() +61
   System.ServiceModel.ServiceHostBase.OnOpen(TimeSpan timeout) +63
   System.ServiceModel.Channels.CommunicationObject.Open(TimeSpan timeout) +563
   System.ServiceModel.HostingManager.ActivateService(String normalizedVirtualPath) +135
   System.ServiceModel.HostingManager.EnsureServiceAvailable(String normalizedVirtualPath) +654

[ServiceActivationException: The service ‘/WinAuthService.svc‘ cannot be activated due to an exception during compilation.  The exception message is: Security settings for this service require Windows Authentication but it is not enabled for the IIS application that hosts this service..]
   System.ServiceModel.AsyncResult.End(IAsyncResult result) +15786048
   System.ServiceModel.Activation.HostedHttpRequestAsyncResult.End(IAsyncResult result) +15706393
   System.ServiceModel.Activation.HostedHttpRequestAsyncResult.ExecuteSynchronous(HttpApplication context, Boolean flowContext) +265
   System.ServiceModel.Activation.HttpModule.ProcessRequest(Object sender, EventArgs e) +227
   System.Web.SyncEventExecutionStep.System.Web.HttpApplication.IExecutionStep.Execute() +80
   System.Web.HttpApplication.ExecuteStep(IExecutionStep step, Boolean& completedSynchronously) +171

<system.serviceModel>
    <bindings>
        <basicHttpBinding>
            <binding name="myBasicBinding">
                <security mode="Transport">
                    <transport clientCredentialType="Windows" />
                </security>
            </binding>
        </basicHttpBinding>
    </bindings>
    <services>
        <service name="WCFSample.WinAuthService">
            <endpoint address="WinAuthService.svc" binding="basicHttpBinding"
                bindingConfiguration="myBasicBinding" contract="WCFSample.IWinAuthService" />
        </service>
    </services>
</system.serviceModel>

internal override void ApplyHostedContext(VirtualPathExtension virtualPathExtension, bool isMetadataListener)
        {
            ServiceNameCollection customServiceNames;
            base.ApplyHostedContext(virtualPathExtension, isMetadataListener);
            AuthenticationSchemes authenticationSchemes = HostedTransportConfigurationManager.MetabaseSettings.GetAuthenticationSchemes(base.HostedVirtualPath);
            if (this.AuthenticationScheme == AuthenticationSchemes.Anonymous && (authenticationSchemes & AuthenticationSchemes.Anonymous) == AuthenticationSchemes.None && isMetadataListener)
            {
                if ((authenticationSchemes & AuthenticationSchemes.Negotiate) == AuthenticationSchemes.None)
                {
                    this.authenticationScheme = authenticationSchemes;
                }
                else
                {
                    this.authenticationScheme = AuthenticationSchemes.Negotiate;
                }
            }
            if ((authenticationSchemes & this.AuthenticationScheme) == AuthenticationSchemes.None)
            {
                if (!AuthenticationSchemesHelper.IsWindowsAuth(this.AuthenticationScheme))
                {
                    ExceptionUtility exceptionUtility = DiagnosticUtility.ExceptionUtility;
                    object[] str = new object[] { this.AuthenticationScheme.ToString() };
                    throw exceptionUtility.ThrowHelperError(new NotSupportedException(SR.GetString("Hosting_AuthSchemesRequireOtherAuth", str)));
                }
                throw DiagnosticUtility.ExceptionUtility.ThrowHelperError(new NotSupportedException(SR.GetString("Hosting_AuthSchemesRequireWindowsAuth")));
            }
            if (this.AuthenticationScheme != AuthenticationSchemes.Anonymous)
            {
                ExtendedProtectionPolicy extendedProtectionPolicy = HostedTransportConfigurationManager.MetabaseSettings.GetExtendedProtectionPolicy(base.HostedVirtualPath);
                if (extendedProtectionPolicy == null)
                {
                    if (this.extendedProtectionPolicy.PolicyEnforcement == PolicyEnforcement.Always)
                    {
                        throw DiagnosticUtility.ExceptionUtility.ThrowHelperError(new NotSupportedException(SR.GetString("ExtendedProtectionNotSupported")));
                    }
                }
                else if (!isMetadataListener || !ChannelBindingUtility.IsDefaultPolicy(this.extendedProtectionPolicy))
                {
                    ChannelBindingUtility.ValidatePolicies(extendedProtectionPolicy, this.extendedProtectionPolicy, true);
                    if (this.usingDefaultSpnList)
                    {
                        customServiceNames = null;
                    }
                    else
                    {
                        customServiceNames = this.extendedProtectionPolicy.CustomServiceNames;
                    }
                    if (!ChannelBindingUtility.IsSubset(extendedProtectionPolicy.CustomServiceNames, customServiceNames))
                    {
                        object[] objArray = new object[] { SR.GetString("Hosting_ExtendedProtectionSPNListNotSubset") };
                        string str1 = SR.GetString("Hosting_ExtendedProtectionPoliciesMustMatch2", objArray);
                        throw DiagnosticUtility.ExceptionUtility.ThrowHelperError(new NotSupportedException(str1));
                    }
                }
                else
                {
                    this.extendedProtectionPolicy = extendedProtectionPolicy;
                }
            }
            if (!ServiceHostingEnvironment.IsSimpleApplicationHost)
            {
                this.realm = HostedTransportConfigurationManager.MetabaseSettings.GetRealm(virtualPathExtension.VirtualPath);
            }
        }

namespace System.Net
{
    /// <summary>Specifies protocols for authentication.</summary>
    [Flags]
    public enum AuthenticationSchemes
    {
        /// <summary>No authentication is allowed. A client requesting an <see cref="T:System.Net.HttpListener" /> object with this flag set will always receive a 403 Forbidden status. Use this flag when a resource should never be served to a client.</summary>
        None = 0,
        /// <summary>Specifies digest authentication.</summary>
        Digest = 1,
        /// <summary>Negotiates with the client to determine the authentication scheme. If both client and server support Kerberos, it is used; otherwise, NTLM is used.</summary>
        Negotiate = 2,
        /// <summary>Specifies NTLM authentication.</summary>
        Ntlm = 4,
        /// <summary>Specifies Windows authentication.</summary>
        IntegratedWindowsAuthentication = 6,
        /// <summary>Specifies basic authentication. </summary>
        Basic = 8,
        /// <summary>Specifies anonymous authentication.</summary>
        Anonymous = 32768
    }
}