Snugboat Harbor is home to two tug fleets around which the series centres: the Star Fleet and the Zero Fleet.
In the TUGS' fictional universe, Snugboat Harbor (referred to as "Bigg City Port") is "the Biggest Harbor in the World" in the "Roaring 1920s", the era in which the series TUGS is set. According to a magazine, Snugboat Harbor (otherwise referred to as "Bigg City Port") was made to resemble a combination of San Francisco and New York.
Snugboat Harbor's main import and export of goods comes from the ocean liners in the series, which use the port as a dock. The area includes various facilities necessary to the port itself (Such as fuel depots, repair yards and the Municipal Dump), and a number of factories and warehouses are also located there. Trampers, car floats, fishing boats and barges of all kinds frequently pass through. The port also contains several old and abandoned areas, sometimes used by criminals as a hideout. A number of locations just outside the harbor briefly appear in the series, including Upriver and Dem Der Rocks.
Snugboat Harbor's location is never actually mentioned but it appears to be located on the American East Coast with factors including:
- The Star Fleet are based on the San Francisco Fleet of the 1920s.
- The Zero Fleet are based on the Moran Fleet in New York City during the 1920s
- Grampus is based on the Plunger submarine class which was used by the US Navy.
- Puffa's design has many features which American steam locomotives had.
- 4th of July (American Independence Day) is celebrated (during the episode, Jack the Grappler was seen with an Uncle Sam style top hat, and Sally was seen flying an American flag).
- The Star Tugs have funnels painted in a way resembling the US Flag.
- American style buildings.
- Sun rising from the ocean and setting over land.
- A basic map of part of the port was produced for the TUGS board game.