Dogville is a very small American town in the Rocky Mountains with a road leading up to it, but nowhere to go but the mountains. The film begins with a prologue in which we meet a dozen or so of the fifteen citizens. They are portrayed as lovable, good people with small flaws which are easy to forgive.

The town is seen from the point of view of Tom Edison (Paul Bettany), an aspiring writer who procrastinates by trying to get his fellow citizens together for regular meetings on the subject of “moral rearmament.” It is clear that Tom wants to succeed his aging father as the moral and spiritual leader of the town.