what is the significance of the setting?

The story of Rip Van Winkle was found among the papers of the late Diedrich Knickerbocker, an old gentleman from New York who was especially interested in the histories, customs, and culture of the Dutch settlers in that state. It is set in a small, very old village at the foot of the Catskill Mountains, which was founded by some of the earliest Dutch settlers. Rip lived there while America was still a colony of Great Britain.

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“Rip Van Winkle” is one of the most famous stories of The Sketchbook of Geoffrey Crayon. It is one of the few that take place in America, although it is believed to be a retelling of an Old World folktale. The setting of the tale, in the Catskills by the Hudson, gives the story a fairly precise location that grounds it in America.