Victoria
Van Diemen's Land
vegemite
Wimmera
Williamstown
Wollongong
Western-Australia
X marks the spot on Ned Kelly's treasure map of the outback
Younghusband
Yallourn
Yowie
Young
Zanthus, WA
Zeehan, Tas
Zetland, NSW
Zillmere, Qld
Zilzie, Qld
Zuytdorp, WA
(all towns/suburbs in Oz)
How about weird creatures - eg
astonished aardvark
avid anteater
angry antelope
Bigfoot
Blue Mountain Scalawag
Banshee
Basilisk
Hobbit
Hydra
Hippogryph
Harpy
Kraken
Ka (Egyptian disembodied soul and valid 2-letter Scrabble word)
Leprechauns
Loch Ness Monster
Magilla Gorilla
Mutant Teenage Ninja Turtles
Mastodon
Mammoth
Mock Turtle
Oreads
Ouroboros
Oompa-Loompas
Ouranos
Orpheus
Pegasus
Phoenix
Piasa Bird