Northfork (2003)

In a near-empty Northfork orphanage, Father Harlan gently tends to Irwin, an eight-year-old who lies between a dream state and death. As orphanage caretaker Harlan reads aloud about Northfork's years-ago forced evacuation to make way for a hydro-electric dam, Irwin's imagination takes flight.

While a team of six men evacuate the last remaining citizens of the town, Irwin, too, invents a cast of characters to prepare himself for his own evacuation. (the above states the caretaker - who is actually the priest - is reading about a years-ago evacuation. In the movie, the evacuation is taking place as the boy lays dying!)