No, Stephen King’s ‘It’ is not based on a true story. The novel is a work of fiction, created entirely from King’s imagination. However, King has mentioned that the character of Pennywise the Clown was inspired by a combination of different fears and influences, including his own childhood fears. The story is set in the fictional town of Derry, Maine, which is a recurring location in many of King’s works. While the events and characters are not real, King’s ability to tap into universal fears and anxieties makes the story feel incredibly real and terrifying to readers.