Hawthorne sets the scene in a rural valley located in an unnamed U.S. state that resembles New Hampshire. A rock formation in a nearby notch is imagined, by many locals and visitors, to resemble the shape and features of a human face:

The Great Stone Face, then, was a work of Nature in her mood of majestic playfulness, formed on the perpendicular side of a mountain by some immense rocks, which had been thrown together in such a position as, when viewed at a proper distance, to precisely to resemble the features of the human countenance. It seemed as if an enormous giant, or a Titan, had sculptured his own likeness on the precipice. There was the broad arch of the forehead, a hundred feet in height.