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The movie is supposed to have been filmed and taken place exclusively in Pasadena, TX, and MOST of it is. The trailer park that they live in, however, is NOT in Pasadena, or anywhere near there. There are several scenes where they show someone driving into the trailer park, and you can see mountains in the background. There aren't any mountains within hundreds of miles of Pasadena.
Gilley's Night Club actually existed in Pasadena, Texas (was owned by Sherwood Cryer) Some scenes were also filmed at 2200 South Main St, and 2016 South Main St., in Houston, Texas.