Establish a location for the story. Refrain from simply listing a location, but rather include details, such as where exactly in the location action is happening, the visuals and sounds of the location, and how it makes characters feel. Be as specific as possible and refrain from using ambiguous descriptions. However, details should not be overwhelming to the reader and each detail should be important. Short stories must not be bogged down by detail.
Make sure that the setting is relevant to the story. Characters, plot and other items must make sense within the context of the setting. To help with this, try to choose a setting that is familiar. This will help the setting to make sense and aid in the detailing process.
Detail plot and characters to aid with the setting. Often, writers may find it useful to throw in details to the setting only after the plot has called for it. This is useful because once the plot and characters have had some fleshing out, it could lead the way for a more well-constructed setting. The reader may not need to know all of the setting's details right away.