Although the film is set in the fictional South Carolina town of Grady (the Squash Capital of the South), a majority of "Doc Hollywood" was filmed on-location in the towns of Micanopy and McIntosh in Florida. Both are south of Gainesville. According to Herald Tribune, the director wanted Grady to represent a small town with a communal feel, cleverly integrating and utilizing the town's architectural offerings into the mis-en-scene of the movie (such as the classic Queen Anne style Benjamin Fontaine House, which was turned into Grady Memorial Hospital). With under 1,000 residents, Micanopy offered generous hospitality during the shoot (via Data USA). 

Per The Gainesville Sun, Micanopy is a quaint place where travelers visit to spend their leisure time and check out the handful of charming antique shops located on Cholokka Boulevard, the town's main street. Established around 1820 (via Chicago Tribune), this unique town retains much of its old charm. Micanopy invokes a peaceful atmosphere and serves as a reminder to slow down, a lesson that Ben Stone eventually learns and comes to appreciate.

As mentioned on the AFI Catalog page for the film, "Doc Hollywood" also filmed some parts of the movie in and around Los Angeles, California, as Ben finally makes it to Beverly Hills at one point in the movie.