and Ember Records started out in the fall of 1996 with the split-label release of The Jazz June's debut EP "The Necessary Conditions Of Currents And Signal" on a 7" vinyl record. After the success of this initial release, the owners of the two separate record labels, Chad Rugola (Keystone) and Ted Kerpovich (Ember), decided to form a partnership and work as a single entity, thus forming "Keystone-Ember".

The two had also previously collaborated, along with Edward B. Gieda III (of An Albatross fame) as a third partner, on the release of a battered women's shelter benefit compilation titled "". This Various Artists compilation was released on CD in 1995 by Mayfly Distribution, the threesome's record distribution and music festival promotion company.

From 1996 to 1999, Keystone-Ember released four EPs and singles on 7" vinyl records and four full-length albums on CD, and gained the status of being one of the first record labels exclusively distributed globally by . Unfortunately, Keystone-Ember's fifth planned CD, Notaword's "You Can Only Grow So Much" album, never made it to production as the partners decided to dissolve the label and went their separate ways in 1999. The album was ultimately released by Box Elder. Many of Keystone-Ember's albums have since been re-released through other record labels.