This mostly acoustic Matraca Berg and Deana Carter penned song features the vocals of Grace Potter from Grace Potter and the Nocturnals. Chesney told Billboard magazine about the collaboration: "This song makes me believe in music even more. I'd never met Grace Potter until she came into the studio. She grew up in the woods in Vermont. I grew up in the woods in East Tennessee. We come from completely worlds, different backgrounds, probably religious beliefs, we haven't talked about it. I don't know what her political beliefs are, I don't know nothing about any of that. I know she's a great person and I know that she is a hell of a singer. I heard her voice and I knew I would love to sing with her one day. I didn't know it would be on this, or this soon.
At the end of 2007, I rented a house North of Malibu, California, for about two months. I was exhausted, I didn't want to talk to anybody, I didn't want to listen to music, I just wanted to be still for a minute. Every day I would drive close in to Santa Monica, meet some friends, eat dinner, and I'd drive back up the PCH with the windows down. That time of year is really chilly, I'd watch the sun set. It's beautiful, I loved it. I would turn on the radio every now and then and I would hear these songs. I heard an Eagles song, I don't even remember what the song was. But I remember thinking, 'Wow, I think I like music again.'
When I heard 'You and Tequila,' it put me in that spot. That's when I thought of Grace, because I listened to her music a lot on the boat, a lot on the bus, her live record especially. She has a song called 'Apology' that still kills me. I got in touch with her and sent her the song, I had already recorded it. She called back the next day and said 'I want to make this happen.' When she came in and we put our voices together, wow. I love the song, Matraca and Deana wrote it, but, boy, it's relatable, so universal. To have Grace on it, that will be with me forever."