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Rusty is a camper at Camp Echo Rock. Big Bird spent a week at camp in 1982 (Season 14), and made friends with Rusty. They played baseball, went hiking, and learned how to swim.
During the week at camp, Rusty was reluctant to participate in activities and had to be urged many times by Mickey and Cabin 10 to do things like wake up or make his bed. Because of this, at the end of the week he was given the Good Sport award for "doing a lot of things he really didn't want to do." It was also revealed at the end of the same episode that Rusty lives around the corner from Sesame Street.
The puppet for Rusty was made out of a modified Large Lavender Live Hand Anything Muppet with pink rod arms added.