No doubt a large part of the budget went towards authentically recreating the Depression era - sets, costumes, period vehicles and more. As a Paramount Ranch historian, I documented the reconstruction of the Western town set that had been used for Dr.Quinn, Medicine Woman to be Mintern, California for Carnivale. They sank a ton of money into overhauling the town to be 1930's. I photo-documented the construction. There was also a LOT of period set dressing for the completed town that never even made it on camera, that was placed to give directors options. (All of which was guarded 24/7 by paid security, by the way.) In addition to making part of the town into Mintern, a section of it was turned into Tipton, Oklahoma for the "Tipton" episode. They also built a shanty town area for one of the episodes. The carnival was never set up at Paramount Ranch, but most of the vehicles were trucked in from one of their other locations to drive through the Tipton part of town for that episode. They paid for quite awhile to reserve Paramount Ranch after season 1 until they decided whether or not they would use the location again for Season 2 (which they didn't.) I was on the set at least once to watch filming, so I can see where it would have been an expensive show to produce, just from what I observed at Paramount Ranch alone. I would add that while Paramount Ranch, as a National Park, is a "bargain" to use as a filming location, the private movie ranches, and they used several, command a lot of money to rent.
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