In what way does the setting affect the story?

The setting is a small, nondescript town with a population of approximately three hundred people. On a clear morning, June 27th, the townspeople, starting with the children, begin to assemble for the lottery to begin at ten in the morning. The setting and exposition of the story gives the reader a sense that this is a town that farms and adheres to a certain conformity. On the surface things seem happy and content but the author drops clues that there is a darker aspect to this community.