What is causing this error – “Fatal error: Unable to find local grunt”

I removed the old version of grunt first, then I installed the new grunt version, and then I got this error:

D:\www\grunt-test\grunt grunt-cli: The grunt command line interface.
(v0.1.4)

Fatal error: Unable to find local grunt.

If you’re seeing this message, either a Gruntfile wasn’t found or
grunt hasn’t been installed locally to your project. For more
information about installing and configuring grunt, please see the
Getting Started guide: http://gruntjs.com/getting-started

Is this because there is not a reference to grunt in my system path? Or something else? I tried to re-install it a few times already.

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