They were inspired by the example of their friends in southern California, Black Flag, who had earlier formed SST Records.

The label's first release was the 1980 various-artist compilation Cracks in the Sidewalk, which included tracks by the Minutemen, Black Flag, and Saccharine Trust.

Eventually the label grew to nurture the early career of the Descendents,[1] issue additional compilation albums (Chunks and Mighty Feeble), and release other recordings by the Minutemen (The Politics of Time), Secret Hate (Vegetables Dancing), and Hüsker Dü (the In a Free Land EP).

The label also showcased a number of post-punk bands from the South Bay area of southern California, notably Slovenly, Phantom Opera, and Invisiblechains.

New Alliance also released the debut single of Ciccone Youth and material from The Coachmen, both of which were Sonic Youth-related projects.