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In the 1990s however, "alternative country" came to refer to a disparate group of musicians and singers operating outside the traditions and industry of mainstream country music. In general these musicians eschewed the high production values and conservative outlook of the Nashville-dominated industry, to produce music with a low-fi sound, frequently informed with a strong punk and rock & roll aesthetic, bending the traditional rules of country music. Lyrics are often bleak, gothic or socially aware. Otherwise, the musical styles of artists that fall within this genre often have little in common, ranging from traditional American folk tunes and bluegrass, through rockabilly and honky-tonk, to music that is indistinguishable from mainstream rock or country. Indeed many alternative country artists come from punk and rock backgrounds. This already broad labelling has been further confused by alternative country artists disavowing the movement, mainstream artists declaring they are part of it, and the retroactive claiming of past or veteran musicians as alternative country. No Depression, the premier magazine of the genre, declares that it covers "alternative-country music (whatever that is)".

Despite this confusion, it is generally agreed that alternative country resulted from two opposed influences on country music. The first is traditional American folk music and styles, the music of working people, preserved and celebrated by practitioners such as Woody Guthrie and Hank Williams. The second is country rock, the result of fusing country music with an aggressive rock & roll sound. The artist most commonly identified as the originator of country rock is Gram ParsonsNudie suit on the lot of A&M records Gram Parsons ( November 5, 1946 September 19, 1973), was born Cecil Ingram Connor III in Winter Haven, Florida to a wealthy family of fruit growers with extensive properties both there and Waycross, Georgia, where Pars, although Jason and the Sorchers and Steve EarleSteve Earle (born January 17, 1955) is a country musician who grew up in Schertz, Texas. He was born in Ft. Monroe, Virginia and was the eldest son of an air traffic controller. He dropped out of school in 8th grade to move to Austin, Texas and learn more are frequently identified as important innovators. These two styles merged in Uncle TupeloUncle Tupelo was a popular music group formed in 1987 in Belleville, Illinois. The founding members were Jay Farrar ( guitar, harmonica, vocals), Mike Heidorn ( drums), and Jeff Tweedy ( bass guitar, guitar, harmonica, vocals). Other members included Ken's 1990See also 1989 in music, other events of 1990, 1991 in music, 1990s in music and the list of 'years in music' Events January 21 MTV's Unplugged premieres on cable television with musical guest, Squeeze February 6 Billy Idol is involved in a serious motorcy LP No DepressionNo Depression is the title of an album released 1990 by the alt-country band Uncle Tupelo. This album is generally cited as starting the alt-country movement and is often used as a description for the genre. It is also the title of a magazine that covers, the first identifiably modern alternative country record.

Alternative country is popularly referred to, especially in print, as "alt-country" or sometimes "alt.country". The genre is also referred to under a large number of other names, including "americana", "insurgent country", " no depression", "cowpunk", "progressive country", "regressive country", "low-fi country", "roots rock", "twang core", "rural contemporary", "country-punk" and many others.