In an early version of the story, Alexia and Alfred Ashford were originally known as Hilda and Hilbert Krueger, respectively.
Rumor has it that Leon S. Kennedy was at one point going to be Claire Redfield's partner in this game and also die near the end. Capcom quickly realized how bad an idea it would be to kill off such a well-liked character and turned him into the new character named Steve Burnside instead (if true, this would explain why Steve looked so similar to Leon in the original release).
This game was originally intended to be Resident Evil 3, with Nemesis being developed as a Gaiden Game. However, once development moved to the Dreamcast, Capcom retroactively made Nemesis the third numbered installment in order to lump the PlayStation games together as a trilogy.