From Muppet Wiki

Old Lady Possum was briefly featured in Emmet Otter's Jug-Band Christmas. She paid Emmet Otter and Wendell Porcupine $0.50 to mend the fence in front of her house.

A naked version of the puppet was later repurposed for The Muppet Show as the lead singer in "For What It's Worth" on episode 221.