The early coming-of-age anecdotes in Guts begin in the Minnesota north woods around 1951, when author Gary Paulsen is roughly 12 years old. After returning from visiting his military father in the Philippines after the conclusion of World War 2, Paulsen lives for several years in Thief River Falls, Minnesota. The town is located 70 miles south of the Canadian border and offers access to a string of lakes, raw wilderness, and the Agassiz National Wildlife Refuge, which was established in 1937. The refuge and surrounding areas are home to wild moose, elk, deer, grouse, ducks, and rabbit, among other animals and a wealth of fish and birds.

The town is famously one of the most ethnically concentrated in the continental United States, with Norwegian Americans accounting for over 50% of the total population. In 1950, roughly 7,000 people called Thief River Falls home, including the Paulsen family.

During the 1950s, northern Minnesota was economically disadvantaged, and jobs were hard to find while offering low wages. The post-war economic boom was slow to reach this remote area. Many able-bodied men turned to trapping and hunting to provide for their families. Trapping and hunting became a respected means of earning additional income, with rabbits returning 20 cents apiece.