Yes, that's North Carolina. About a third of it, to be precise.
The People's Republic of Pineland is an entirely fictional country created for one purpose: to put the USASF through their paces. And when we say it's a fictional "country," we're including the people -- the residents are straight up part of the mission. The cities and towns within the 15 counties that comprise the training zone actively participate in the month-long training, with its citizens posing as citizens of "Pineland" in a vast, government-funded, open-air role playing game.
"... lightning bolt?"
People there take on a large variety of roles, from doctors and shop owners right down to one guy who has to torture other citizens before being killed in a final showdown with the soldiers. They even carry two sets of ID and have their own currency, with an exchange rate and everything. They don't stop their normal jobs, either -- the guy whose job it is to pretend to be a torturer is also a volunteer firefighter in his spare time.
Everyone who takes part does it for no more than the cost of the gas they use during the month the exercise takes place. One such citizen, when he dies, is set to receive a full military funeral for his services to his country and his selfless actions during the Robin Sage exercises, complete with a Pineland liberation flag draped over his grave. When asked why he was willing to do so much for so little reward, he simply said, "This may help save a life one day."
Not to mention that having this in his wallet gets him a considerable amount of action.
But hey, at least the citizens were in on it. That's not how they used to do it in Australia, baby ...