Most of Night of the Whale is set in Ocean City, New Jersey, a family resort on the New Jersey coast. The story takes place right after the central characters graduate from high school. The day after the graduation ceremony, they travel to Ocean City to stay at the beach house of the parents of Helene Hallewagen, editor-in-chief of The Acorn, the high school newspaper for which they all worked. The use of the house is part of Wags's graduation gift.

On a trip from Ocean City to Wildwood, New Jersey, on the fifth day after graduation, their car breaks down, and they find a beach nearby, which they call Acorn Beach, but whose real name is Nelson's Cove.

Since they cannot make it to Wildwood, they decide to have a party at the beach. During the party, Digger Binns discovers the stranded whales.

Another setting is the...