What term describes the location where a story takes place?

The term that describes the location where a story takes place is "setting." This encompasses not just the physical location, but also the environment in which the characters interact, including elements like time period, weather, and the cultural backdrop. The setting is crucial for understanding the mood of the story and how it influences characters and plot development. It provides the context within which events unfold, helping readers visualize the world of the narrative and feel the impact of external factors on the story's action.

In contrast, "background" might refer to the details that support the setting but does not specifically define the location itself. "Context" generally relates to the broader circumstances surrounding the events of the story rather than the physical space. "Scene" typically describes a specific moment or event within that setting, focusing more on action than the overarching location. Therefore, "setting" is the most precise term for identifying where a story occurs.