In "The Summer Solstice" by Nick Joaquin, the setting is a small town outside of Manila in the Philippines during a typical June summer day. During this time of year, which is the height of the dry season in the region, the sun is particularly strong and the streets are often packed with people.

Central to the story is the annual San Juan fiesta. This festival, which is held in honor of the patron saint of the town, starts with a procession, followed by a mass and other festivities like singing, dancing, and eating. The streets are filled with stalls and vendors selling food and drinks, and there is a general sense of joy and celebration in the air.

The town is described as being a bustling place with a mixture of old and new buildings, narrow streets, and a mix of cultures and religions. The heat and the crowded streets create a distinct atmosphere that sets the stage for the events that unfold in the story.