In Christian theology, dispensationalism is a Biblical framework that divides history into different periods, where God deals with us differently. Its general view is that we live in a time where we cannot live up to Jesus' Sermon on the Mount. However, sometime in the future, we will be able to. When that time comes, people will have to follow the Sermon's teachings to get salvation.
Dispensationalism was promoted by John Nelson Darby, an Anglo-Irish Bible teacher, and the Plymouth Brethren, a low church and nonconformist Christian movement, in the mid-19th century. It became popular in the United States (US) with the effort of Evangelical preachers James Inglis, James Hall Brookes and Dwight L. Moody.
Dispensationalism is widely held by followers of Baptist churches, Pentecostal churches, Charismatic churches, and nondenominational Bible churches, which see the Bible as the perfect guide for how we should act. Dispensationalism is different from covenant theology, which sees the history of God's dealings with us under the framework of works, grace and redemption.
Covenant theology is a hermeneutical framework that seeks to understand the Bible according to its covenantal structure. Covenant theology is particularly associated with Reformed theology, as the Reformed tradition has devoted much attention to studying the biblical covenants. As Dr. R. C. Sproul frequently observed, 'Reformed theology is covenant theology.'