Where else in the story does Coelho provide details about the physical setting in order to lend more meaning to the events which occur there?The...

Coelho describes the ruined church where Santiago spent the night with his sheep very well.  He gives explicit visual imagery so that the scene in imprinted in the reader's mind.  This is the place where the boy had his dream about going to the Pyramids.  When Santiago finally does get to the Pyramids, the leader of the robbers (after stealing Santiago's gold and nearly beating him to death) tells the boy that he, too, once had a dream about finding treasure, but he was not about to embark on a long journey because of a dream.  He goes on to describe the place he saw in his dream, and the reader (because of Coelho's vivid imagery in the earlier chapters) is able to recognize the location based on the robber's words.