When I was young and foolish, Chapel Hill (and Raleigh, too) had a huge music scene and I got to be a part of it as a spectator. There was a lull about the time I quit going to clubs, but it now seems like we're right back in the fight. I've seen only one of these groups live, but it is so fun to follow all of them and their progress on the national and local scenes. I'm going to let the music speak for itself here. Be sure, however, to click on links of those you are interested in - most of these bands have artsy and unique web pages.
Carolina Chocolate Drops
The Love Language
I Was Totally Destroying It (My husband's favorite)
Birds of Avalon (Disclosure: I know the bassist/singer)
Lost in the Trees