Skegpool is a holiday resort created close to the abandoned Chemical Plant Zone, giving those who lived in the Zone's pollution a fresh place to enjoy their summers. The beach, however, is still highly toxic and those who dare to go swimming must wear Protecto-Cossies. The town is a portmanteau of real towns Skegness and Blackpool. Daz Dynamo is either a resident or frequent visitor of Skegpool, attempting to woo the ladies by doing push-ups with his little finger.
The Zone came under attack by three Caterkillers sent by Doctor Robotnik as a way to counter Tails and his aerial patrol. The fox beat the Badnik invaders and pumped all of the toxic waste into the tunnel they created, presumably cleaning up the majority of the poisoned holiday resort.