It is a world that takes place in the mind of Boyd Cooper, a paranoid security guard of an asylum, which the protagonist Raz explores.

He decided to create a conspiracy-based level around "I am the milkman, my milk is delicious," a phrase made up by a staff member at Double Fine.

Art director Scott Campbell wanted to emphasize the paranoia Boyd experiences, accomplishing this by adding G-Men and the feeling of being watched to the level.

It has received attention for its depiction of mental health, with author Alice Brumby discussing how Boyd's mind is the most "disordered" among Psychonauts' cast.

"Milkman Conspiracy," like certain other areas in Psychonauts, takes place in the mind of a person, that of paranoid security guard Boyd Cooper.

The world is populated by G-Men, who watch protagonist Raz suspiciously while using tools incorrectly in an attempt to blend in while looking for someone called the Milkman.

[2] In addition to the G-Men, there is also the Rainbow Squirts, a group of girl scouts led by a woman called the Den Mother.

This line caused various ideas to converge for the game's director, Tim Schafer, leading him to create a conspiracy-focused level.

He created a chart of conspiracies centered around the level's central character, Boyd Cooper, using various theories that Schafer had heard.

These included famous real-life conspiracy theories, ones from movies, ones inspired by discussions at their office, and a homeless man who they paid to sweep the driveway.

[2] Schafer went into it imagining the world as a giant spider-web surrounding Boyd's house, designed to evoke a "retro, [19]50s spy vibe" in a suburban neighborhood where things were not as they seemed.

Art director Scott Campbell wanted paranoia to be a more prominent aspect of the level, which he accomplished by having eyes and binoculars come out of various objects and landmarks whenever players are looking away from them, to create the feeling of being watched.

He wrote the G-Men's dialogue to be flat and nonsensical while having some thread of truth, and cited the line "rhubarb is a controversial pie flavor" as an example.

[2] "Milkman Conspiracy" has received generally positive reception, identified by multiple critics as a fan favorite of Psychonauts.

They compared the design of the world to a combination of graphic artist M. C. Escher and filmmaker Tim Burton and praised the gameplay concepts employed.