The Legend of Sheepy Hollow is a titanic, efficient nation, ruled by The Sage with an even hand, and remarkable for its free-roaming dinosaurs, state-planned economy, and frequent executions. The hard-nosed, humorless, devout population of 13.784 billion Sheeples are highly moralistic and fiercely conservative, in the sense that they tend to believe most things should be outlawed. People who have good jobs and work quietly at them are lauded; others are viewed with suspicion.

The enormous, corrupt, moralistic government juggles the competing demands of Education, Law & Order, and Administration. The average income tax rate is 78.7%, and even higher for the wealthy.

The all-consuming Sheepy Hollowian economy, worth a remarkable 1,325 trillion Wools a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. However, for those in the know, there is an enormous, deeply entrenched, extremely specialized black market in Trout Farming and Soda Sales. The private sector mostly consists of enterprising ten-year-olds selling lemonade on the sidewalk, but the government is looking at stamping this out. Average income is 96,193 Wools, and evenly distributed, with the richest citizens earning only 2.1 times as much as the poorest.

Mountains of VHS tapes of police actions are stacking up in the National Library, prisoners regularly escape detention posing as scarecrows, frat-house partying has become the national pastime, and Sheepy Hollowian dissenters are begging human rights groups to ignore them. Crime, especially youth-related, is totally unknown, thanks to the all-pervasive police force and progressive social policies in education and welfare. Sheepy Hollow's national animal is the Ghost Shepherd, which frolics freely in the nation's many lush forests, and its national religion is Ancestor Worship.

Sheepy Hollow is ranked 34,275^th in the world and 8^th in Caer Sidi for Most Eco-Friendly Governments, scoring 2,499.17 on the Dolphin Recycling Awareness Index.