It is known that Ian Fleming was so unhappy with "The Spy Who Loved Me" that he allowed only the title and the Bond character to be used in the film. This helps explain why the stories bear absolutely no resemblance to each other, even taking into account routine embellishment by movie producers.
On the first page of the book, Vivienne Michel, the narrator, describes her location as a motel ten miles west of Lake George.
The only road one can take in anything approaching a westerly direction from Lake George is Route 9N; ten miles puts one in the town of Lake Luzerne. Given a reasonable assumption that Fleming would have at least consulted a map before deciding on a setting, this has to be it: the location of the Dreamy Pines Motor Court, and the setting of the novel.