This tends to be a hotly debated song, it is often thought to be about vampires, but the band has denied this on many occasions.
From an interview....
"Possum Kingdom" is not about "doing the nasty." It,
like most of Toadies' tunes, are stories, as Umbarger explains while Lewis
excuses himself to grab a tissue. "They're just these silly stories he's
heard his family tell. Like 'Tyler' and 'Possum Kingdom' are just like
stories...In Texas, there's just this big storytelling thing - whenever your
family gets together, they sit and talk and tell all these stories. 'Possum
Kingdom' is a ghost story."
"Possum Kingdom is a lake. One of the ten best fishin' spots in the
U.S.," Lewis says upon returning.
Is it a about a ghost or vampire at the lake?
Everyone laughs. Man-of-mystery Lewis replies: "I don't know."
"It's not about vampires," Umbarger insists. "Even though we have a big
underground vampire following in Florida. They come with their teeth and
everything. I'm not lying about that, that's a real story. They'll show up
and you'll be talking to someone, and they'll smile and it's like, 'Jesus
Christ! You've got fangs!' And they're like, 'Yeah. It's a vampire thing.'
So we have this big vampire underground following, and 'Possum Kingdom' has
kind of stirred it up."
So what's it really about, then?
Not missing a beat, Lewis replies: "Vampires."
Laughter breaks out yet again.
"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," Lewis explains about the watering hole
where his family used to hang out and barbecue. "They dammed up this big
river up there, and it's got all these spooky names like Hell's Gate. It's
really cool."
http://www.musicfanclubs.org/toadies/toadies/ripart.txt