Cloudland

Cloudland was released in May 1989 on Fontana and produced by Stephen Hague. It is the seventh studio album. Waiting for Mary, whose video got some MTV exposure, reached number 6 on the Modern Rock Tracks chart, the band's only Billboard chart success to date. Record Collector said the single got heavy MTV rotation. Martin Aston of Music Week wrote that it sounded "as fresh, vital and impulsive as a debut" and was quite their best since Dub Housing, and Stereo Review called it "smart music for a mass audience".

The album's opening track, Breath, returns to a line from the first song on New Picnic Time about a dream that was a tin can. Cutler and Ravenstine left after the album was recorded.