In the '90s, Pavement were the band to mention liking if you wanted to sound cool, even if all you really knew was "Cut Your Hair." There's probably no current act that fills that role--thanks to the Internet, everyone knows every band and is sick of them after a couple of weeks.
They haven't played together since 1999 (though lead singer Stephen Malkmus has kept busy with current band the Jicks), so this scoop from the ever-newsworthy Brooklyn Vegan blog is a Big Deal: according to "reliable" sources, Pavement will be playing New York City's Central Park Summerstage in September...2010. They also go on to speculate (why not?) that the official reunion will start at next year's Coachella, because that is the place influential alternative rock acts go to reunite, after all (Pixies, Jesus and Mary Chain, Portishead, etc.).
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There's still no real concrete details on this thing, but seeing as how Pavement has been one of the most rumored/desired reunions of the past decade, you can see how people are psyched. Feel free to wildly speculate about what might happen next, or just enjoy this video of Pavement's most mainstream moment.