Phantom Lake, a serene lake in Mukwonago, Wisconsin, has long been a dumping ground of various and sundry companies, looking to eliminate their waste products, including atomic waste. It is patrolled by the Canoe Cops, a duo of police officers, who have not yet noticed anything strange in the water. The lake also sports a lush forest surrounding it, a forest which is home to a World War II vet, Michael Kaiser. Driven to insanity by the events of the war, he murdered his wife and fled to the woods, always on the watch for his enemies, the Germans.