The set for Silverado (1985) was built for this movie, and has since been used in movies such as Young Guns (1988), Wyatt Earp (1994) (also starring Kevin Costner), Last Man Standing (1996), Lonesome Dove (1989), All the Pretty Horses (2000), and Wild Wild West (1999) (also starring Kevin Kline). In the latter film, as a reference to co-writer and director Lawrence Kasdan, "Kasdan Ironworks" can be seen on the side of one of the buildings.
In the scene where Augie tries to jump on Jake's horse and falls to the ground, the horse is wearing Jake's hat. This was Costner's idea just before the cameras rolled to keep with his character's goofy nature. Kasdan loved the idea, and it stayed in the film.
Cook Ranch, twenty-five miles from the heart of Santa Fe, New Mexico, served as the site for the town of Silverado. Production designer Ida Random and set designers Bill Elliott (a.k.a. William A. Elliott), Chas. Butcher, and Richard McKenzie had the challenging task of completely creating the forty-building western town. From a vast body of historical reference, Random and her team, and a construction crew of 140, designed and built such structures as the Midnight Star Saloon, a hotel, and a church. Construction coordinator Clarence Lynn Price and his able crew completed the town in twelve weeks, in less than desirable conditions, below freezing temperatures, and winds as high as sixty miles per hour.
After working with Kevin Kline on this film, John Cleese wrote A Fish Called Wanda (1988) and the role of Otto specifically with Kline in mind.
John Cleese's first line, "What's all this then?", is a Monty Python in-joke, as that line was often uttered by policemen upon entering the scene of a crime on Monty Python's Flying Circus (1969).