In that title ("Red Wolf Country"), the word "Country" is referring to a large general area, not a political system or place. For example, in history, the 1840s in the current state of California can be referred to as Gold Rush Country -- not because it was a country with a government (yet), but because many, many people were rushing to the area and looking for gold in the mountains and foothills in the center of what is now California.
Red wolf country would simply be referring to a large area in which red wolves lived and roamed -- their territory -- which might or might not cross political boundaries (such as the US-Canadian border).
Here is a link to a book with this name -- http://www.amazon.com/Red-Wolf-Country-Jonathan-London/dp/0525451919 -- scroll down a bit and read the Editorial Reviews to get an idea of its content.
What an interesting question! Here are all the meanings of the word "Country:"
1. 1an indefinite usually extended expanse of land : region - miles of open ∼
2 a. 2 athe land of a person's birth, residence, or citizenshipb. ba political state or nation or its territory
3 a. 3 athe people of a state or district : populaceb. bjuryc. celectorate
4. 4rural as distinguished from urban areas - prefers the ∼ to the city
As for which word did the author have in mind? I'm not sure, but it would not be "town" and it could be "nation."