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Bixby, Nevada is a town located thirty miles from Perfection, Nevada. It was referenced multiple times throughout the first film. But it wasn't shown until Water Hazard, where it served as the main location for the second half of the episode.
Only people that are know of living there are Melvin Plugg, Sheriff Sam Boggs, Deputy Kelly, Dwaynne, Bud, Mack and Orville James. After the attacks by the large shrimp, Dwaynne, Bud and Mack were killed.
This is the movie or episode in the series that features Bixby. It was the main setting for most of the episode. Only six people that lived in the town were named. Melvin recently moved there after being kicked out of Perfection, he was starting to build a golf course in which was paying Orville James to haul water to it. After everyone expect for Dwaynne had left, the shrimp attacked, and killed him.
The next day Melvin returns there with Rosalita, and they find the decaptitated body of Dwaynne floating in the water. Rosalita walks off and finds a shell, but her and Melvin have no idea what is. Rosalita takes it back to Casey, who tests it, and they find out that it is a large shrimp infected with Mixmaster.
Melvin goes to Tyler to see if can kill the shrimp, he goes despite only being payed $5. There he meets Mack and Bud Brown, who are killed by the shrimp, and Tyler is left with a scar on his arm. The sheriff comes and arrests him for "murdering" three people. Melvin then calls Burt to get him out of jail, they leave, and Tyler goes to Casey who tells him that the shrimp is loaded with Mixmaster and they need shut Melvin's project down.
Twitch and Casey go to Bixby, they tell him that he is shut down, and that it is a giant shrimp that is doing all the killing.