Graham said in an interview published in the September edition of Prestige Hong Kong magazine the film is based on the fire at the Triangle shirt factory in Manhattan.
"It's my pet project. I've been working on getting it made for around 10 years," Graham was quoted as saying. She said she will also star in the movie as one of the factory workers.
The 37-year-old actress said she learned about the fire watching a Ken Burns documentary on the history of New York City.
"He did 45 minutes on the Triangle fire and by the end I was bawling my eyes out," Graham reportedly said.
She said she's "one or two months" away from securing financing and is looking for a director.
Graham is known for movies like "Boogie Nights" and "Austin Powers: The Spy Who Shagged Me." She was recently seen in the comedy "Gray Matters" and will be seen in the upcoming drama "Adrift in Manhattan" and the romantic comedy "Buy Borrow Steal."