In 1993, Williams life took a dramatic turn when she learned that she was suffering from multiple sclerosis. In 1994, a variety of artists, including Pearl Jam, Lou Reed, Soul Asylum, Lucinda Williams and others, joined together to record some of Williams songs for a tribute/benefit project called Sweet Relief: A Benefit for Victoria Williams. That year, Williams also released a new album herself, entitled loose.
Also that year, Williams teamed up with Bruce Cockburn, Phil Keaggy, Rich Mullins, Daniel Amos, The Choir, Chagall Guevara, The Call and other artists, to record a tribute album to songwriter Mark Heard who had passed away in 1992. That album, entitled Strong Hand of Love, raised money to help Heard's family pay hospital bills.
In 1995, Williams released her first live album, This Moment in Toronto With the Loose Band. Williams ended the 1990's with 1998's Musings of a Creekdipper and followed it with Water to Drink in 2000.
Her gift at breathing new life into standards, most often limited to her live concerts, was finally committed to record in 2002 on Sings Some Ol' Songs where she covers classics such as Somewhere Over The Raindow, My Funny Valentine and Moon River.
She continues to tour regularly with her husband Mark Olson under the name of the Original Harmony Ridge Creekdippers and have produced a handful of home-produced records of mostly Olson's intricate compositions.