According to this article at
Washingtonpost.com,
Running with Scissors is working on
Postal 3, code-named "Catharsis". The year is 2007 and the Dude left the Paradise City that was destroyed in the last game after accidentally finding and setting off a "weapon of mass destruction" misplaced by the US government. Players can still use the weapons, but they will be rewarded with a better outcome if they choose a nonviolent path. For example, if the Dude will encounter a wounded person on the street, he can either run over the guy, ignore him or bring him to the nearest hospital. Thanks:
Gameguru Mania.