Find and learn songs which tell a story. Folk ballads to contemporary songs often suggest a larger tale. Listen to records and then have students retell the story in the song in their own words. Or have a "storysong" concert.
Story Circle
One person begins a tale and stops after a few sentences. The next person picks up the story thread and continues it, then stops. Next person adds to it and so on until the tale comes to a resolution. The story could begin with a pre-selected title or subject to guide the improvisation. Try recording the story circle on a tape recorder for later listening.
Local Historians
Have students collect stories about their town from older people. Have students find out how the streets were named. Are there any interesting people or legends to which the street names refer? Are there any local places in town about which people tell stories? Any haunted houses? Have students find out when the town was founded and by whom? Visit a local historical society to see old photographs or artifacts.