This scene is painted on the side of a building in Modesto, CA. I used to cruise McHenry Ave in Modesto in my younger days. American Graffiti was filmed in Petaluma but was supposed to be Modesto. George Lucas is from Modesto and this was his first big hit film. It is based on his experiences as a teenager in Modesto and as graduate of Downey High School, called Dewey High School in the film.