In 1985 Thompson signed with PolyGram and received a sizeable advance. He and Nancy Covey married at an alcohol-free wedding that included a who's who of roots-music performers who Covey knew well from McCabe's and the Los Angeles music scene, and had introduced to Thompson. After their wedding, Thompson moved his home and working base to California. As part of the settlement that allowed Thompson to leave Boyd's Hannibal label for Polygram, the live album "Small Town Romance" was released. This comprised recordings made during Thompson's solo shows in the US in late 1981 and early 1982.