I may possibly have read to many fairy stories, but I read it as taking place in a parallel world which lies alongside the real world and touches at some points (and that seems to be what JKR was aiming at).
It's the same sort of world that Shakespeare seems to have inhabited (and E. Nesbit, for that matter).
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It's the same sort of world that Shakespeare seems to have inhabited (and E. Nesbit, for that matter).