The 36-year-old helped Harriers reach the fourth round of the FA Cup last season, playing against West Ham as a substitute – during his third spell at the club.
And Rushall boss Liam McDonald hailed it as ‘a massive signing’.
“I have been chasing him all summer and I am really pleased that he has chosen to come here,” he said. “He’s a footballing defender and his decision to join us was based on football reasons rather than financial as he had some big offers elsewhere.
“That’s such a boost for us as we have landed a quality player who can tap in to the experience of over 200 games in the Football League.”
Lowe added: “My aims are to first of all get into the team, as I know there is a lot of talent in the squad. Then to give a real big push to a successful season, which could ultimately lead to promotion.
“This is a challenge that really excites me.”
There will also be lots of competition in the Pics goal, after Andy Wycherley was signed up – while Jon Flatt has committed for the season ahead.