You can either purchase backgrounds from companies like
       Betty Lukens and Little Folks  or you can easily make your
       own. If you wish to purchase them Betty Lukens and Little
       Folks Visuals they offer both mounted and un-mounted
       backgrounds.

       Backgrounds can be mounted to a variety of board types.
       Most people use a heavyweight cardboard. I have seen some
       mounted on masonite  or old sheets of wood paneling cut to
       size.I use acid-free foam core boards  available at Michaels
       in the framing dept. or at your local craft store. I recommend
       using a board that measures 27” by 36” for most stories.

       To mount them you can either wrap them around the board and
       tape with a heavyweight packaging tape or use large size binder
       clips on the corners. I use 3M #77 spray adhesive to permanently
       mount mine. To do this cut your background to size, then spray an
       area of the board and attach the fabric, then spray and attach
       to another area of the board. Don't try to do the whole board at
       once as it can be quite hard to get the fabric applied evenly if you
       try to do it all at once.

       When making backgrounds purchase a good quality felt from your
       local fabric store. I find that Joann's Fabrics has the best
       selection of colors and quality felt.

       You can use a light blue for a sky background and then apply
       different pieces to depict grass, trees, buildings or other objects.
       You can also purchase overlays to make scenes. One thing I have
       done is mount a Navy blue felt to a board and then use an overlay
       to depict a night scene.

It is also a good idea to have a plain white background as well
        for the times you don't really need a custom background. I don't
        recommend using black as a background as it is too difficult to see
        at a distance.  

        When coloring backgrounds I recommend using oil pastels. You
        can also use chalk and then spray them with a workable fixitif,
        I use Krylon #1305 available at Michaels or most craft stores.
        Colored markers will also work but can be quite costly.
        If you use acrylic paints you will have problems getting your
        figures to stick to the background. Acrylics cause the nap of the
        fabric to flatten out. Some people use spray paints designed
        specifically for fabric use.