The story takes place at the Paris at the Opera Garnier, which was built between 1857 and 1874. During building it became necessary to pump underground water from the foundation pit of the building, creating a huge subterranean river. The employees claim that the opera house is haunted by a mysterious ghost who wreaks chaos and destruction when displeased. Erik, a horribly deformed musical genius known as the "Opera Ghost", uses this facade to send the managers of the Opera Garnier repeated threats of catastrophe should they not pay him a monthly salary of 20,000 francs.