Although Plum Creek (in Redwood County, Minnesota) is near the town of Walnut Grove, the name of the town is not mentioned in the book.
A fictionalized description of the devastation created by Rocky Mountain locusts in the 1870s can be found in the novel On the Banks of Plum Creek by Laura Ingalls Wilder, though the description is based on actual incidents that happened to her family in western Minnesota during the summers of 1874 and 1875.
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