The Legend of Sheepy Hollow is a colossal, efficient nation, ruled by The Sage with an even hand, and renowned for its compulsory military service, state-planned economy, and pith helmet sales. The hard-nosed, humorless, devout population of 8.517 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 73.9%, and even higher for the wealthy.

The frighteningly efficient Sheepy Hollowian economy, worth 781 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 91,807 Wools, and evenly distributed, with the richest citizens earning only 2.2 times as much as the poorest.

The government is trying to clean up all the rubbish that has washed up on the shores of Bigtopia and Marche Noire, politicians tend to jump ship to whichever party is currently leading in the polls, army doctors who come under attack defend themselves by using stethoscopes like nunchaku, and the fishing lobby has stemmed the tide of environmental regulations. 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 77,653^rd in the world and 42^nd in Caer Sidi for Lowest Crime Rates, with 68.89 law-abiding acts per hour.