The original title of the series was Cheesy Puppet Theatre, because the idea was to do a low rent SNL with puppets - but after everyone put so much hard work into the series it was no longer as cheesy as we imagined it would be, and it ended up being retitled Twisted Puppet Theatre because it was so dark and off the wall.
The series was given a budget for a pilot, and producer Mitchell Kriegman decide that he could shoot enough episodes for a season with that amount. He hired young writers fresh out of college, and a scrappy team of puppeteers, shooting 13 episodes in a couple of weeks' time.