Here's my pick. It may not be the worst hole in the world, but it's a total joke*. It was built on a decent site with good, sandy soil about an hour north of World Woods on similar terrain. As far as I know, there were no development or environmental restrictions. The 16th and 17th holes at Williston Highland(s) Golf Club are pictured below:
From the back tee of the 17th, at the lower left, the drive must be hit at least 230 yards, slightly uphill, to allow the player a straight shot at the green. But it can only go 250 before the fairway runs out. From there, it's about another 180 yards back down the hill to the green. To top it off, the green is so severely crowned that a bogey is almost certain, even after hitting decent first and second shots.
What about alternate playing angles? A sign just to the right of the tee declares that any ball that flies to the right of it (i.e., over the 16th hole) is OB. When I played this hole in high school matches, throwing caution to the wind, I routinely played over and through the trees in the approximate direction of the "fairway" (woods) bunker. I'm not sure I ever pulled it off.
* The joke is that after 8 holes among the first 16 with severe but not completely unusual doglegs to the left, the course's designer felt the need to overcompensate.