Dry Dry Outpost is a town in the first Paper Mario video game. It is only accesible through the Toad Town Pipes or by going through Mt. Rugged and Dry Dry Desert. You meet Mousefasa here. Behind the Toad House is Merle's tent.
In Paper Mario: The Thousand-Year Door, Lumpy mentions that he visited Dry Dry Outpost when he was looking for oil.
Circling the red palm will make a toad in a green turban nearby give you a Star Piece.