The needs of teenagers in an isolated planned community called New Granada, east of Denver, Colorado, were not considered by those who designed the community, and their approved activities are to attend school and hang out at the recreation center, which closes at six o‘clock. The kids turn to drink, drugs, sex, vandalism and other petty crime to kill their boredom, but the adults are too concerned with their careers and business interests and focus on curbing the adolescents' seemingly senseless behavior through a 9:30pm curfew rather than understanding the root causes. After one of the kids is killed by a police officer, the youths violently rebel.
The film was inspired by events described in a 1973 San Francisco Examiner article entitled "Mousepacks: Kids on a Crime Spree" by Bruce Koon and James A. Finefrock. The article reported on young kids vandalizing property in Foster City, California. The middle class planned community had an unusually high level of juvenile crime. Screenwriters Charles S. Haas and Tim Hunter began work shortly after the article's publication, including field research in the town itself where they interviewed some of the kids. Hunter said that the script accurately reflected the article with the exception of a more violent ending. Orion Pictures helped finance the film; producer George Litto borrowed an additional $1 million. Director Jonathan Kaplan, who was just 30 when hired, took a documentary approach to filming, using unknown actors. Among them was Matt Dillon, then age 14, whom the filmmakers discovered in a middle school in Westchester County, New York. This was Dillon's feature film debut. Shooting took place over 20 days in 1978 in Greeley and Aurora, two cities in Colorado. Due to the negative publicity surrounding a wave of recent youth gang films such as The Warriors and Boulevard Nights, Over the Edge had a limited theatrical release in 1979. But the film has since gained cult film status. In late 1981, it was shown at "Film at Joseph Papp's Public Theater" as part of a program called "Word of Mouth", devoted to films that had been overlooked because of poor marketing or distribution. This screening led to it being listed on critical top-10 lists and was favorably reviewed by Vincent Canby at The New York Times. The film then re-emerged in the 1980s with showings on cable, including HBO and videocassette. Director Richard Linklater said the film influenced his film Dazed and Confused. Over the Edge was an inspiration for the music videos for the songs "Smells Like Teen Spirit" by Nirvana and "Evil Eye" by Fu Manchu.
Over the Edge was Orion's second release and was released May 18, 1979 in 8 cities in the United States on a test run basis with the biggest release in Charlotte, North Carolina. The film received critical acclaim. Vincent Canby of The New York Times gave the movie a positive review, stating, "It's to Mr. Kaplan's credit that he makes New Granada look just as boring and alienated to us as it does to the unfortunate children who live there."