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The setting of the novel is important, in part, because it provides a great cover for Gatsby and Daisy's affair. It also symbolizes the social strata in this society. It is also important to the plot of the novel; Nick came "East" because he returned from the Great War a bit disillusioned with his home and in need of some place new

In The Great Gatsby, as is the same in any story, the setting is important because it helps set the tone (the author's attitude) and the mood (the reader's feelings) of the story.  It also gives you a visual of a time one is not familiar with since it is set several years ago.  The setting is also important to appeal to imagery (or all of your senses).  Without the setting, one cannot place characters accurately or understand the actions of characters if they do not know the appropriate time, place, etc.