Nope, Total Recall was based on "We Can Remember It for You Wholesale." I wonder what story you are thinking of?

Edit: yes, apparently: "In 1966, the late Philip K. Dick published the novelette "We Can Remember It for You Wholesale." A movie based on the story will be released next year; this book is a novelization of the script and the original novel" -- http://www.amazon.com/Total-Recall-Piers-Anthony/dp/06880520...

Perhaps you mean Piers Anthony?

And that was a full-length novel, later turned into a major motion picture, starring Arnold Schwarzenegger.

Edit: it was adapted into that movie, then novelized afterward?

Edit2: http://www.amazon.com/Total-Recall-Piers-Anthony/dp/03807087...