"Welcome to Sky Valley" was recorded in early 1993 and was first meant to be released in January 1994. Because their last album did fairly well, they moved to the main record label Chameleon from the smaller label "Dali". In November 1993, Chameleon suddenly shut down. Elektra then quickly signed the banned and planned to release Welcome to Sky Valley in March 1994. The release was then slowed down even more and the album wasn't released until June 1994.