Here's a breakdown:
* The village: The story is set in a poor, isolated fishing village, unnamed but likely based on real-life villages near La Paz, Baja California Sur.
* The sea: The vast and unpredictable sea is a central character, providing both the livelihood and danger for the villagers.
* The pearl beds: The pearl oysters are found in the shallow waters off the coast, representing both wealth and potential tragedy.
The setting plays a vital role in the story. It emphasizes the stark contrast between poverty and potential wealth, the power of nature, and the corrupting influence of greed. The beautiful yet unforgiving landscape mirrors the moral struggles of Kino and Juana, the main characters.