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The Old Man and the Sea is set in and around an unnamed village located on the island of Cuba. The fish that Santiago and the other fishermen catch and deliver to the fish house by the harbor are collected "for the ice truck to carry them to the market in Havana."
When the marlin takes Santiago's bait, it pulls the boat to the north and east, gradually moving further away from the lights of Havana on the horizon. The story gives no indication of how many miles away from the shoreline they are when the marlin is finally killed, but they presumably are somewhere in the water northeast of Havana, in between Cuba and the islands of The Bahamas.
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