The band originally formed in the West Midlands by bassist Martin Blunt, who recruited fellow West Midlanders; Rob Collins (keyboards), Jon Brookes (drums), John Baker (also known as Day) (guitar) plus vocalist Baz Ketley, who was almost immediately replaced by Tim Burgess.

Although the name The Charlatans was used when original members of the band were located in the West Midlands, many sources state that they formed in Northwich, Cheshire. This is because the band relocated to the home town of new lead singer Tim Burgess (who lived in Northwich) before the release of The Charlatans' debut single "Indian Rope" in 1990 on the band's own Dead Dead Good Records label.

The debut single, "Indian Rope" proved an indie hit and the group soon found a major label, Beggars Banquet off-shoot Situation Two, in time for the release of "The Only One I Know" which reached the Top 10 in the UK singles chart.

A further single, "Then", and debut album Some Friendly, were released later that year, followed by the single "The Only One I Know" which led to great commercial and critical acclaim and is still regarded as an indie classic. Around this time The Charlatans were forced to add UK to their name for an American tour due to competing claims by a 1960s rock band also known as The Charlatans.

Baker left the band after 1991's "Over Rising" single to be replaced by Mark Collins (no relation to Rob), who made his debut on another non-album single, "Me. In Time".

The band brought in producer Flood for their second album Between 10th and 11th (named after the address of the New York Marque, site of the group's first U.S. gig). Released in early 1992, the album failed to reach the top twenty in the UK. However, a double weekend of gigs ('Daytripper') in Blackpool and Brighton with Ride kept them in the public eye.

Later that year, the band suffered a major setback when Rob Collins was charged with armed robbery after his friend had robbed an off licence while he was waiting in the car outside.

Collins claimed to have no foreknowledge of the robbery until he heard a gunshot inside the shop and his friend exited, although he later admitted that he should not have picked his friend up after he realised what he had done. At court, he pleaded guilty to the lesser charge of "assisting an offender after an offence" and served four months in prison.

The follow-up album, Up To Our Hips (1994) reached number 8 in the UK albums chart.

In 1995 the band's self-titled fourth album saw them become major UK stars again, topping the UK albums chart and spawning the top 20 single "Just When You're Thinkin' Things Over".

But, just as things seemed to be going well for the band, keyboard player Rob Collins was killed in a car crash during the recording of fifth album Tellin' Stories on July 22, 1996.

The Charlatans decided to continue and Primal Scream and former Felt keyboardist Martin Duffy was drafted in for The Charlatans high-profile support slot with Oasis at their Knebworth gigs in summer 1996 until a permanent replacement for Collins could be found.

Tellin' Stories was released in 1997 featuring contributions from both Rob Collins and Duffy and in the singles "One to Another", "North Country Boy" and "How High" the group had their biggest UK hits to date.