The film claims (like many before it) to be "based on a true story", but just how closely it adheres to true events is the subject of considerable debate and a lot of apparently deliberate fudging by the Coens. The apparent truth is that the story was inspired by a number of real events which occurred at different times and places.
The movie is named after Fargo, North Dakota, although most of the action is set in Minnesota in midwinter, but unseasonably mild weather meant that fake snow had to be used for many scenes.
It won Academy Awards for Best Actress in a Leading Role (Frances McDormand) and Best Writing, Screenplay Written Directly for the Screen, and was nominated for Best Actor in a Supporting Role (William H. Macy), Best Cinematography, Best Director, Best Film Editing and Best Picture.