The movie is an example of the movement called "La Movida Madrileña"or "The Madrid Scene." representing the new freedom in the wake of the dictator Francisco Franco's death in 1975.
Due to writer/director Pedro Almodóvar having a day job at the time, working for Telefónica, Spain's national telephone company, and the extremely low budget (initially just 500,000 Pesetas, or about 3000 Euros), the film was shot only on weekends with a volunteer cast & crew over an extremely long period of a year and a half. This yielded a 50 minute long film, which convinced producer Pepón Coromina to provide additional funding for six more months of filming, adding 30 minutes to the running time. As such, different shots within a same scene were shot months apart. For example, in the opening scene, the part where Pepi goes to answer the door was shot in June 1979, the part where she opens it in December 1979 and the part where they're together in her apartment in June 1980.
The initial budget 500,000 Pesetas was raised largely by actors Carmen Maura and Félix Rotaeta, who were the ones who encouraged writer/director Pedro Almodóvar to adapt his comic "General Erections" into a film.
The famous golden shower scene was the first scene shot by both Carmen Maura and Alaska, and they even met that day.