Question:

I was just wondering, if you were writing a story, would the place your story is set have to be in existence?

Answer:  No.  If you are writing a story you can make up anything you want to. It’s fiction.  However, you can also choose to place a story in a real town too.  That’s your choice.  It’s up to you.  That is what is so great about fiction and why we writers love it!