Possum Kingdom is a lake in Texas, near the Dallas/Fort Worth area where the band is from - it even has its own Chamber of Commerce
There are no mentions of possums or kingdoms in the lyrics, but we do hear a creepy story about a spooky walk around a lake.
In a 1995 interview with RIP
magazine, Toadies lead singer Todd Lewis, who wrote the song, said: "It's just a story I heard long ago; it's just a really cool, eerie lake, and some stuff I heard and some stuff I just make up. I tend to do that. They dammed up this big river up there, and it's got all these spooky names like Hell's Gate. It's really cool."
Lewis went on to say that there was supposedly a real stalker in Tyler, Texas who became a folk hero: "I was down there for Thanksgiving, and after the family got through talking about who died and who's got cancer and all those things that families talk about, they started talking about this guy who was peeping in windows and started breaking into people's houses. He'd go out of his way to be seen, and everyone is like armed to the teeth, and he's like tapping on windows. The whole family was freaked out about it."