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1.
The middle of nowhere, back of beyond. A place where a no-name nobody (e.g a journeyman golf pro)lives.
As soon as Jerry Kelly has worked that flukey streak out of his system, he'll be going back to Palookaville where he belongs.
by S April 26, 2004
 
2.
A nonexistant place that is supposedly the source of all palookas in the world.

Such a place would be characterized by mediocrity or stupidity, and therefore may be used to refer to a place that exemplifies these qualities.
The job was a one-way ticket to Palookaville.
by mendaliv January 29, 2007