Inspired by Jen's "Do you see dead people" thread, let's keep going with the Halloween-ish theme.
Tell me about a local urban legend in your area.
In my city, there's a road that goes up into the hills (where houses are few and far between) called Marsh Road. Local legend and many high school students claim this road is haunted by the ghost of a local teen who was murdered by her boyfriend in 1981. These days, you have to trespass to get to the murder site, so there are also tales of people being shot at by the landowner. The murder was real and was made into a movie called "River's Edge" with Keanu Reeves. It was also said that you couldn't rent the movie in my city (or at least none of the video rental stores carried it), so I've never seen it.