I've been giving it some thought, and only coming up with bits and pieces as I go along.
We could base it in the modern world. Magic can be derived from some mythological source (which we can come up with at a later point), and strictly controlled by the government. The governing powers of each country as well as international authorities would do their best to hide any information pertaining to magic or its affiliation from the general public.
Magical beings and/or creatures could be disguised in random, comical ways. Elves could be models or famous musicians (as they are generally alluring creatures). Imps, pixies, or fairies could have the power to change into small animals, and thus become household pets or plants all across the world with no one the wiser. That also leaves a little room for some animal-communication comedy. "Evil" magical beings and/or creatures could take the forms of men (some of them of course, others could take other shapes or none at all) and be the cause of crime and discord.
If you're looking for a location where we may have a magically-educated community, we could base it under the ocean, or perhaps within a vast mountain range. The only access to such a place would be by some magical means, of which only a select few are privy to. What that means might be, is entirely up to you.
To get characters into the world of magic, you could have some sort of massive event take place in a city. Could be in a location where a school trip was taking place, leaving you with a plethora of cultural backgrounds to create from versus a limited city/state.
Hope any bit of this was inspiring for you.
250
100
200
