In 1905 someone in Louisville came up with the idea to fill half a bottle with water and then blow alongside the bottle’s opening: it created a bass-like sound. As a consequence several jug bands were formed and also recorded in the 1920s. They became popular all over the United States. Will Shade heard the records in Memphis and this made him form the Memphis Jug Band.
Source:
The Best of the Memphis Jug Band (Yazoo cd 2059)