They refer to it only as the "Northern Woods". It's really obscure regarding the place where this movie is set. Yeah, the story of hte bear is in Clare county Michigan(oddly enough, Crooked Lake and Lake George resemble Bass Lake the closest in this county), but they also say(when they are riding horses on the trail) to look out for Wisconsin Rattlers. I'm thinking it could be either Wisconsin(I'm guessing Lac Courte Oreilles, Chief Lake or Round Lake) or Michigan(especially considering John Hughes was born in Lansing, Michigan, despite having much love for the Chicago area).
Wisconsin has a lot of lakes, but to narrow it down, much of them are among farmland, not wilderness. The Great Outdoors is set in the wilderness, thick with forests and campgrounds, and as Bass Lake(in California) is also among dense woodland area, so would the lake and campground area(and town) be if it was located in Wisconsin or Michigan?
Though, regarding this topic, I'd have two questions:
1. Where about around Bass Lake was the exterior of the cabin located? The interior is a set, but we see the deck and before they go waterskiing, the exterior of the cabin behind them.
2. Where was the carnival located? If you Google Earth search Bass Lake, you can find the area where the A&W Restaurant was located(the place where Roman was looking at the jet boat and Chet was buying hot dogs), an icon called "The Pines" is located at the far end of that street. Unless it was a traveling carnival or existed back in the 80s, it isn't there anymore(though it could've been shot somewhere else entirely).
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