The label was founded by Strachwitz in 1960 as a way for him to record and produce music by previously obscure "down-home blues" artists such as Lightnin' Hopkins, Snooks Eaglin, and Bill Gaither.
[7] In 1966, his friend Ed Denson introduced him to a local band, Country Joe and the Fish, who were active in anti-Vietnam war protests at Berkeley.
Strachwitz recorded the band singing "I Feel Like I'm Fixin' To Die", and gained a share of the song's publishing rights.
[5] Strachwitz also won royalties for Fred McDowell from the Rolling Stones' performance of his song "You Gotta Move" on their Sticky Fingers album.
[7] Artists who have recorded for the Arhoolie label include Black Ace, Juke Boy Bonner, Big Mama Thornton, Big Walter Horton, Lightnin' Hopkins, George 'Bongo Joe' Coleman,[9] Snooks Eaglin, Dave Alexander, Nathan Beauregard, Clifton Chenier, Elizabeth Cotten, Sue Draheim, Jesse Fuller, Earl Hooker, John Jackson, Mance Lipscomb, Guitar Slim, Robert Shaw, Mississippi Fred McDowell, Whistlin' Alex Moore, Charlie Musselwhite, Doctor Ross, Bukka White, Big Joe Williams, Silas Hogan, Mercy Dee Walton, The Campbell Brothers, BeauSoleil, Jerry Hahn, the Pine Leaf Boys, Los Cenzontles, The Klezmorim, Rose Maddox, Rebirth Brass Band, and HowellDevine.
In 2014, filmmakers Maureen Gosling and Chris Simon released a documentary film about Arhoolie Records entitled This Ain't No Mouse Music,[10] which is distributed by Argot Pictures.