Final answer:
The background art in Disney's 'Lilo & Stitch' was created using watercolor paintings, which contributed to the film's distinctive visual style and depiction of its Hawaiian setting.
Step-by-step explanation:
The background art used in Disney's Lilo & Stitch is notable for its distinctive and charming style. For this film, the artists used watercolor paintings for the background art. This choice was a departure from the more common digital backgrounds or traditional acrylic and gouache paintings used in many other animated films of the time. The watercolor technique helped create a soft, lush depiction of the Hawaiian setting in which the story takes place and added to the film's unique visual appeal.