I grew up about an hour away from a small town called Adams, TN. This is your typical southern small town, except that it has a very famous haunting, The Bell Witch.
According to legend, in 1817 a local by the name of John Bell came across a strange animal on his farm. The animal had the body of a dog and the head of a rabbit. Bell shot at the animal but it vanished before he could get it.
Later that night, he heard a series of beating sounds on the walls of their log cabin. As weeks went by, the sounds increased and became more intense, and his children started complaining of having their bed covers thrown off them at night. The ghost, whose voice sounded like an old woman, would sing hymns and quote scripture loudly, His youngest daughter, Betsy, had the most encounters, having her hair pulled and being slapped by the invisible entity.
The word spread through Tennessee and General Andrew Jackson took quite an interest in it. Him and his entourage paid a visit to the Bell farm, but as they neared the property, their wagon surprisingly stopped. The horses couldn't pull it. They then heard a mysterious female voice tell them they could proceed. At once, the horses were able to pull the wagon.
Later on, at the Bells' home, one of Andrew's men was bragging that the spirit was scared of his silver-bullet filled gun, saying it would kill any evil it came in contact with. Immediately, the man started screaming in pain and was kicked out the door by some unseen force.
Jackson's men begged him to let them leave, but he wanted to stay one more night. However, Jackson experienced something that truly scared him and early the next morning, they were seen heading quickly back to Nashville.
The Bell Witch continued to harrass John Bell until his death in 1820, and when he died, you could supposedly hear her shrill voice echoing across the farm cursing Bell. The witch took responsibility for Bell's death, saying she poisoned him. The family then found a small vial of unidentifiable liquid in the cupboard. They gave some of it to their cat, which died instantly. John Bell's son threw it in the fireplace, where it burst into blue flames.
The land and the nearby cave (where the Bell Witch supposedly tortured members of the Bell family) have been known for "strange" happenings ever since.
I've visited the cave, and though I personally have never experienced anything "strange," my mother attempted to go to the cave three times when she was a kid and each time something happened with their car to prevent them from going (she's convinced it's the Bell Witch!). Legend also says that if you take a rock from the cave you'll be cursed. I'm not really a superstitous person, but I never wanted to take the chance to find out! Hollywood even made a movie about this legend, An American Haunting.
Does your town/city have any hauntings or scary legends?