Postal Dude returns as the main character in Postal III. He has moved to Paradise's sister city Catharsis. According to Running With Scissors' official website, Postal Dude is just "trying to save up for new tinfoil to put over his trailer windows." Postal III will also let the player decide which way Postal Dude is going to follow: the "good" way by joining the Catharsis police force to protect the citizens, or the "bad" way and join the schemes of Mayor Chomo (portrayed by Ron Jeremy) and Uncle Dave.
In an interview, Steve Wik (Lead Design/Creative Director of Running With Scissors) and Andrew Belkin (Lead Producer of Akella) commented that Postal III would focus more on Postal Dude's personality, as well as his past and future actions, hence the idea of making Postal III a third-person shooter.