"Kaw-Liga" is one of just a handful of songs that Williams wrote with Fred Rose, who produced his records and published his songs through his company Acuff-Rose. Rose often "doctored" the songs Hank composed, making suggestions and revisions, with biographer Roger M. Williams noting that Rose's contribution to Hank's songs was probably craftsmanship, whereas Williams' was genius. Roy Acuff later recalled:

Kowaliga is a community in central Alabama on Lake Martin. Named after a legendary Indian for which a wooden statue was later placed near the lake, the song was written by Hank when he was staying at a lakeside cabin that he owned and still stands today. The song tells the story of a wooden Indian, Kaw-Liga, who falls in love with an "Indian maid over in the antique store" but does not tell her so, being, as the lyrics say:

The Indian maid waits for Kaw-Liga to signal his affection for her, but he either refuses or is physically/emotionally unable (interpretations vary) to talk, ever the stoical Native American of the popular stereotype. Because of his stubbornness, Kaw-Liga's love continues to be unrequited, with Hank Williams, the narrator/singer of the song lamenting,

The song ends with the Indian maid being bought and taken away from the antique store by a buyer, leaving Kaw-Liga alone,

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