In Rage's story, the asteroid strikes on August 23, 2029, and the few pockets of survivors are forced to begin a new civilization.

The world is populated by human survivors of the impact, who have come together to form settlements around oases and other practical or habitable locations, including racetracks. These fragile homes are diligently defended by the inhabitants against bandits and mutants, which are divided into various gangs and organizations of their own. Bandits and mutants serve as the player's main enemies for much of the game, and later races, although id Software has hinted at some sort of significant change around the halfway point in the storyline, where races become relevant.