A term first used by blacks in the South to deride white racists, today Peckerwoods also refers to organized racist activity in and out of the nation's prisons. In the late 1980's, recruitment of young men and women in many of the nation's prisons helped lead to the emergence of white power street gangs similar to the neo-Nazi skinheads - with one major difference. Neo-Nazi skinheads disavow any form of drug use. Peckerwoods, like most gangs, earn their money from drug-dealing, clandestine drug labs, and gun-running. Women in this movement are called Featherwoods.

The typical Peckerwood gang has approximately 5 to 20 members who range in age from their early teens to their mid-20s. Most of these gangs lack leadership and structure. Common tattoos include Peckerwood, White Pride, White Power, WP, Wood, SWP (Supreme White Power) and other Nazi related insignias. Peckerwoods are similar to Skinheads except for one major difference. Drugs. Neo-Nazi Skinheads are completely against any type of drug use. Peckerwoods, much like typical street gangs, make much of their money from the sale of drugs. The Peckerwood 'style' is derived from both Latino gangs (Pendleton shirts and baggy pants) and Skinheads (Doe Marten boots, flight jackets, and in some instances, shaven heads).

Criminal activities perpetrated by Peckerwoods include theft, burglaries, vehicle thefts, weapon charges and possession and sale of narcotics. They have also been known to be involved in numerous racially motivated assaults and murders.