Page "The Village (The Prisoner)" Paragraph 4

Finally, the series finale episode, " Fall Out ", strongly suggests that it is located in England near London, and shows a sign for a road which is in Kent.

Number Six and other characters are able to drive from the Village ( or at least the Degree Absolute interrogation facility which may or may not be attached to The Village ) to central London, indicating a location in Great Britain.

Although a line of dialogue in " Many Happy Returns " has a character speculating that the Village is on an island, this is never confirmed in the series, and in fact all given locations ( save for that in " Fall Out ") should be considered unreliable evidence given the fact they are mentioned as part of a deception aimed at getting Number Six to reveal why he resigned from his secret British government job.