Friends: my screenplay is "set" in the mid-west (a tornado will play a role ). As I set the scene for the story however, I'm wanting it to be more scenic, quaint small village in Vermont like--(green rolling hills, covered bridges, sheep grazing). This IS for a movie of course, so am I allowed the artistic license to make the setting look like this quaint village but to have it be set somewhere in Kansas? In other words, can I call it "small town in Kansas" but it might not actually LOOK like many towns in Kansas? Most of us haven't really been there anyway!
Call the town whatever you want, but I would recommend describing the region authentically whether they film there or not. Sure, not everyone has been to Kansas, but most people are familiar with it — "The Wizard of Oz" anyone? The Midwest has a very distinct topography. Kansas is located in the Great Plains. If you want "green rolling hills" then perhaps set it somewhere other than Kansas which is widely known to be flat farmland. It's more like "rolling wheat fields" or maybe it has an "undulating surface." Lol! However, the far eastern third of the state does have some hills and forests. Perhaps set you story in that part of the state.
As Dan said, assuming it's a spec, you can describe it any way you want such as "small town in Kansas but looks more like Vermont" but bear in mind if it's picked up and made, that description / town / state may not remain. Just make sure you're not too attached to the elements of your story that you'll resist a change.
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THAT'S what I'm talking about! Great advice, friends :)