"The Watermelon Woman" was made on a budget of $300,000, financed by a $31,500 grant from the National Endowment for the Arts (NEA), a fundraiser, and donations from friends of Dunye. The photographic Fae Richards Archive, documenting the fictional actress' life, was created by New York City-based photographer Zoe Leonard. Made up of 78 images, the collection later was exhibited in galleries and as a book. Some of the photos were auctioned off as a fundraiser to fund the film's production.