Rochester, New York, native Frank LaLoggia based the film on a popular and long-standing local urban legend known as "The White Lady." Legend has it that the White Lady had a daughter who disappeared at the hands of a predatory young suitor, and so the White Lady roams the lake front to this very day, searching for her missing daughter. The supposed residence of the White Lady is actually the base of a demolished hotel that was built in the 1800s. Known as the White Lady's Castle, it has become a popular tourist attraction and party site for teenagers.
Emily Tracy who plays Frankie's mother is Lukas Haas' mother in real life.
On the DVD commentary, director Frank LaLoggia says that he got the idea for using the song "Did You Ever See a Dream Walking?" (which is a significant plot element in the movie) from hearing it in the Eddie Cantor movie Roman Scandals (1933). Actually, this song does not appear in the Cantor film; it was written for the musical Sitting Pretty (1933). Both "Roman Scandals" and "Sitting Pretty" were released in 1933.
First starring role in a motion picture for Lukas Haas. Also the first time he received top billing.
Was originally rated R by the Motion Picture Association of America but was later rated PG-13 on appeal.