The version I heard in Louisville KY as a kid has several things in common with other versions sited here. "Lil" would seem to be the accepted name of the super woman who finally gave Piss Pot Pete his greatest test. The version I heard started "I'll tell you the story of Louisville Lil/Proudest whore in Louisville". Jim Dixon's version seems to also bear out a Louisville connection. I further notice that most versions contain a reference to "bare-assed Greek" or "Bare-ass Creek". I would contend that the original phrase might well have been "Out of the hills of Beargrass Creek", which is an actual watercourse in the Louisville area.
Has anyone considered the possibility that Pete and Lil were historical figures, and that the Great Coital Duel might actually have happened? Maybe archaeologists should get busy checking the Louisville area for Lil's butt ruts.