Hiatt received his first Grammy nomination in 1995 for his album "Walk On". Hiatt's next few albums never gained any momentum on the charts, and he saw little change in his fan base in the late 1990s, indicating a dedicated following. In 2000, Hiatt released his first independent album on Vanguard Records, "Crossing Muddy Waters", which saw a heavy influence of bluegrass in his music. Later that year, he was named songwriter/artist of the year at the Nashville Music Awards. In 2001, "Crossing Muddy Waters" was nominated for a Grammy Award for Best Contemporary Folk Album, with Davey Faragher and David Immerglück as his only accompanists.