Dogville is a tiny, Depression-era hamlet in the Rocky Mountains. Life is simple but hard there where few people visit due to it small size and the fact that is exists at the end of a dead end road. Thus, when a stranger arrives in the form of Grace (NICOLE KIDMAN), she quickly draws everyone's attention, including that of the town's unofficial leader, Tom Edison Jr. (PAUL BETTANY).
An aspiring writer who lives with his retired physician father, Tom Edison Sr. (PHILIP BAKER HALL), and enjoys playing checkers with the mentally slow Bill Henson (JEREMY DAVIES), Tom convinces his fellow townsfolk that they should allow Grace, who's reported to be a fugitive from gangsters, to stay with them.
They agree, but only on the condition that she has two weeks for everyone to get to know and like her. As such, she begins to offer her help to the likes of general store workers Ma Ginger (LAUREN BACALL) and Gloria (HARRIET ANDERSSON); the Hensons (BLAIR BROWN & BILL RAYMOND) who polish and resell glass, and orchard worker Chuck (STELLAN SKARSGÄRD) who's unhappily married to Vera (PATRICIA CLARKSON) with whom he has many kids.
There's Jack McKay (BEN GAZZARA) who won't admit or accept that he's blind; Ben (ŽELJKO IVANEK) who claims to work in the freight industry; Martha (SIOBHAN FALLON HOGAN) who runs the mission house, and the town's only black residents, Olivia (CLEO KING) and her handicapped daughter, June (SHAUNA SHIM). Finally, there's Liz Henson (CHLOË SEVIGNY) who's just happy to have Grace around to divert the men's stares away from her.
It isn't long before Grace is accepted into the town and is working odd jobs for everyone. Yet, after repeated appearances by various people looking for her, the townsfolk slowly but surely begin wanting more for her in exchange for them hiding her. From that point, and as the demands become more arduous, mean and dangerous, Grace must figure out what to do about the sudden change in the town's demeanor, all as she hopes to keep hiding from the gangster (JAMES CAAN) who's after her.