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The story is set in Sleepy Hollow, a hamlet of Tarry Town, New York, around the year 1790, not long after the American Revolution, which plays a central role in the story. Washington Irving was beloved in part for his self-awareness as an American in a brand-new nation, and it is therefore significant that the story is set in an American town. The narrator emphasizes that Sleepy Hollow is one of the oldest originally Dutch settlements in the region and humorously describes the first Dutch sailors to visit the area as “ancient.” In reality, only a few hundred years have passed. This ability to poke fun at America’s parochial communities is a hallmark of Irving’s and is present throughout the tale. The Sleepy Hollow of Irving’s short story has a tranquil yet spooky atmosphere, which affects both residents and visitors alike. It is suggested that the area may have been bewitched by a German doctor, who was one of the first settlers to the area, or that a Native American chief once held powwows there. The narrator includes these details intentionally to give the setting a sense of history since the United States is such a young nation at the time the story takes place. The details also support the setting as a perfect place for a ghost story.

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