We'll play this similar to the Emmy Lou version below. This is a fantastic song with easy chords. You can play in the same key as the Emmy Lou video in GCEA tuning! Try throwing in some SUS4 chords in the [C] and [G]s for interest. The lyrics are a mixture of Van Zandt and Emmy Lou versions particularly in the choruses.
"Pancho and Lefty" is a song written by country music artist Townes Van Zandt. Often considered his "most enduring and well-known song," Van Zandt first recorded it for his 1972 album The Late Great Townes Van Zandt. A music video was released for the song in 1983, depicting Willie Nelson as Pancho, and Merle Haggard as Lefty. Townes Van Zandt also appears in a supporting role. Members of the Western Writers of America chose it as the 17th greatest Western song of all time.
*****REVISED/REFORMATTED April 6, 2019 - SR****
A video for this song: