Here's what we know:
* Margaret's job: She works as a librarian, which suggests she lives in a town or city with a library.
* The story's setting: The story features a strong sense of place, suggesting a small, quiet town with a strong sense of community.
* The Watcher's presence: The Watcher is a mysterious figure who observes the townspeople, highlighting a sense of isolation and paranoia that could be present in a smaller community.
Based on these clues, it's safe to assume that Margaret Story lives in a small town or village somewhere in the United States. The specific location isn't essential to the story, as the focus is on the psychological impact of the Watcher's presence rather than geographical details.