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How to I tell the reader what they need to know in order to understand whats happening
One thing I like to remember is don't underestimate the reader. A little inference here and there will allow the reader to work out 'oh, that's what's happened' without actually slowing the story down to a crawl to explain it with exposition or show it with a flashback. Sometimes of course, the interests of pacing may prefer a slower section and then I'm happy to do it, but usually not at the start. (And mind you, my first drafts are often unadulterated garbage, so a lot of this comes out in revision).
The 'writing lessons' link at the top of this page has some discussion by OSC on this and other issues as well, in case you've not yet explored there.
TIP is the second in a series, so there's a lot of backstory. Worse, there's a whole milieu painstakingly developed in the first book (THE SHAMAN'S CURSE). And a whole bunch of characters who relate to the MC in various ways already established in TSC.
Somehow, I've got to work in enough (just enough) of that in the first five chapters or so to allow the reader to know what's going on and who's who. Without an info dump. Yeah. Piece of cake.
According to my latest reader, I'm not quite there yet. Too many things left unexplained leads to confusion. It's a fine balance.
The rule I'm trying to employ is to find a way to introduce just enough just when it's needed.
For an example by a published author, I suggest THE CURSE OF CHALION, by Lois McMaster Bujold. The way she works in Caz's history just when you need to know it and as it would have come out naturally is darn near perfect. Now, if I could just do that.
Alternatively, you could have a discussion (within the story) about the repercussions of particular bits of backstory, which allows their regurgitation by being viewed in a different, usually more condensed or onesided, light. This approach allows things to be hidden and revealed later.
In OSC's writing information on this site, he also does some great work on beginnings that's worth reading.
Figuring out where to start a story is one of the biggest tricks of writing, I think. Hint: a good place to start a story is right before a character makes an important (life-altering) decision...
Really, once you've told someone who you are, there's no need to go on, and info can be dropped into conversation on a need-to-know or need-to-make-a-joke basis.
(I can't pretend I always follow this---sometimes it seems someone shows up in the story and I just have to explain who that person is.)
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...but avoid writing most of the first chapter in the past tense?
Does that mean you're writing your story in present tense? 'Cause that can be kinda offputting in its own right...it's another one of those "conventions" about storytelling, one of those rules writers are encouraged to stick to, but there are lots of great stories that pay no attention to it.
Then there is a case to be made that that is precisely the thing you SHOULD change. You've fixated on that one thing and you're trying to twist the story to fit it, and it's clear that you have real concerns as to whether that's actually serving your story well.
Reconsider whether your story really starts with your opening scene. Wonderful though it might be, is it really the opening of the story? If it is, then you need to find a way to work the backstory in - depending on how much there is, there are a lot of ways of doing this (take a look at "The Lies Of Locke Lamora" as an example of interpolating backstory - not necessarily a good example, I found that the repeated "oh no! Locke's in trouble! If only he knew how to do X!" chapter ending, followed by a chapter of backstory explaining how he did indeed know how to do X, removed any tension after the first time - it was almost to the level of "with one bound, he was free!").
In other words, I wouldn't say that this is a first draft question.
Only tell your readers what actually applies to the scenes they are reading.
[This message has been edited by Kathleen Dalton Woodbury (edited August 19, 2010).]