Pinkie lives in Ponyville, a small town below Canterlot, the capital of the land of Equestria. There the residents consist of ponies, pegasi, and unicorns. Their leader, Princess Celestia, is in fact a unicorn and a pegasi, and rules over Equestria with an iron hoof...I mean with love and affection. Yes. No really she's totally not believed to be an evil dictator by the fans >.>
Ponyville is small but blooming. It started as a farm, Sweet Apple Acres, which is still around today. Pinkie used to live with her family on a rock farm before she discovered how much she loved laughter and moved into the heart of Ponyville to start a new life.
In Ponyville Pinkie throws parties and lives above a bakery where she helps Mr. and Mrs. Cake (the owners) with their business on occasion. Even though she knows EVERY pony in Ponyville and is pretty much friends with them all, Pinkie's BEST friends include Twilight Sparkle, RainbowDash, Rarity, Fluttershy, and Applejack. Together they find the meaning and magic behind friendship and send regular reports to the Princess Celestia (who apparently doesn't know how friendship works and needs reports, cough).