In this chapter, we will discuss in some detail how the environments of the storyworld are arranged in narrative. We will begin by defining what we understand by environment and the crucial role of environments in building the world of short stories and novels. We will then distinguish two basic ways to arrange environments into a fictional setting: as a topographical layout of natural and artificial things in space or as atmospheric relationships between those same things and the characters of the story. This distinction will allow us to present a typology with four major kinds of setting that may be found in prose fiction: irrelevant, functional, mental, and symbolic. We will then see how literary narratives use description to represent the setting and induce in the reader’s mind a vivid image of the storyworld. Finally, we will discuss the notion of verisimilitude and show how literary description can be used to encourage readers to read fictional stories as if they were happening in the ‘real’ world.