In 1992, Cooder, Keltner, and Lowe again backed up John Hiatt, but this time they gave themselves a band name, Little Village, a reference to a Sonny Boy Williamson II project. Expectations for the Little Village album were high, but the album failed to even chart as high as Hiatt's last solo album, and the group disbanded after an only moderately successful tour.
In 1993, John Hiatt recorded Perfectly Good Guitar with members of alternative rock groups School of Fish and Wire Train. Hiatt recorded the album with producer Matt Wallace who had worked most prominently with Faith No More, a band that Hiatt's 15-year-old son Rob had recommended for him. It was Hiatt's highest peaking album at #47, but again was still not the true commercial breakthrough A&M expected. The next year, Hiatt released Hiatt Comes Alive at Budokan?, his first live album and his last album with A&M Records.
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