My favorite Austin band was (and always will be) the ARC Angels. After SRV died, they released one of the best one-off albums, in tribute to his memory.
Yeah, they're pretty good. If you want to talk tribute bands, we have a couple out here. One of them is an AC/DC tribute band (name escapes me) and they rock pretty hard ! They sound just like them ! It's simply amazing.
Also we have a Beatles tribute group here called the Eggmen. The music is right on, however the vocals have left me wondering at times...... Maybe I just caught them on a bad night.
I'd also need to add the Asylum Street Spankers in to the mix of favorite local acts. These people are hilarious ! Here's their site : asylumstreetspankers.com