The Handmaid's Tale is set in the Republic of Gilead, a theonomic military dictatorship formed within the borders of what was formerly the United States of America.[5]

Beginning with a staged attack that kills the President and most of Congress, a fundamentalist Christian Reconstructionist movement calling itself the "Sons of Jacob" launches a revolution and suspends the United States Constitution under the pretext of restoring order.[7] They are quickly able to take away women's rights, largely attributed to financial records being stored electronically and labelled by sex. The new regime, the Republic of Gilead, moves quickly to consolidate its power, including overtaking all pre-existing religious groups, including Christianity, and reorganize society along a new militarized, hierarchical model of Old Testament-inspired social and religious fanaticism among its newly created social classes. In this society, human rights are severely limited and women's rights are even more curtailed. For example, women are forbidden to read, and anyone caught in homosexual acts would be hanged for "Gender Betrayal."...

...Bruce Miller, the executive producer of The Handmaid's Tale television serial, declared with regard to Atwood's book, as well as his series, that Gilead is "a society that’s based kind of in a perverse misreading of Old Testament laws and codes".[15] The author explains that Gilead tries to embody the "utopian idealism" present in 20th-century régimes, such as Cambodia and Romania, as well as earlier New England Puritanism.[16] Both Atwood and Miller stated that the people running Gilead are "not genuinely Christian".[17][15] The group running Gilead, according to Atwood, is "not really interested in religion; they're interested in power."[18] In fact, in her prayers to God, June (Offred), reflecting on Gilead, prays “I don't believe for an instant that what's going on out there is what You meant…. I suppose I should say I forgive whoever did this, and whatever they’re doing now. I’ll try, but it isn’t easy.”[19] Margaret Atwood, writing on this, says that "Offred herself has a private version of the Lord's Prayer and refuses to believe that this regime has been mandated by a just and merciful God."[20]

Christian churches that do not support the actions of the Sons of Jacob are systematically demolished, and the people living in Gilead are never seen attending church.[15] Christian denominations, including Quakers, Baptists and Roman Catholics, as well as Jews, are specifically named as enemies of the Sons of Jacob.[18][15] To this end, the book includes a scene in which a Catholic Christian nun is "forced to renounce her vow of chastity in order to become a child-bearing handmaid."[17] Likewise, a Catholic Christian priest was hanged from a bridge for refusing to renounce his faith.[21] Atwood pits Quaker Christians against the régime by having them help the oppressed, something she feels they would do in reality: "The Quakers have gone underground, and are running an escape route to Canada, as—I suspect—they would."[20]