Horror narratives are particularly common and popular in the Philippines. They are considered to be part of the folklore tradition in the lower mythology dimension.  Narrators typically introduce creatures that are main characters of the story; examples are the kapre in the acacia tree, the nuno sa punso, and the tikbalang in the woods. However, these horror story characters seem to vanish. This is due to the apparent remaking of the environment, which also happens to be the setting of the horror story.  These types of horror stories are liked by the audience because the latter relates to the story:  the plot ‘happens’ in the same place as where the listener resides.  In rural-to-urban transformation, the physical features of the place inevitably change.  Because some of the features that validate the existence of the horror story creatures disappear alongside the transformation, these creatures are also ‘displaced’/demystified. This study will describe the remaking of the community from rural to urban through the analysis of horror narratives. Describe the narratives through the analysis of the rural to urban transformation of the community. Part of this study is an observation of:  (1) how the setting influences the efficacy of instilling fear by such narratives; and (2) the effects of remaking the city to the physical features of the place that is also the setting for horror stories.