This song was issued as a 12" promotional single in the USA to promote the soundtrack to the 1988 Mel Gibson film Tequila Sunrise. It also appears on the Ricky and Pete soundtrack (Tass and Parker, 1988). A re-recorded version of "Recurring Dream" appears on the Crowded House compilation album Afterglow (1999).
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The original four-piece lineup included Craig Hooper, formerly of The Reels, who left the band just prior to them travelling to Los Angeles to record their debut album in 1986.