Rules vs Loaders in Webpack - What's the Difference?

Loaders are used in Webpack 1
Rules are used in Webpack 2+

According to the migrating docs at the official Webpack site.

module.loaders is now module.rules

The old loader configuration was superseded by a more powerful rules system, which allows configuration of loaders and more. For compatibility reasons, the old module.loaders syntax is still valid and the old names are parsed. The new naming conventions are easier to understand and are a good reason to upgrade the configuration to using module.rules.

Example of Delta

  module: {
-   loaders: [
+   rules: [
      {
        test: /\.css$/,
-       loaders: [
-         "style-loader",
-         "css-loader?modules=true"
+       use: [
+         {
+           loader: "style-loader"
+         },
+         {
+           loader: "css-loader",
+           options: {
+             modules: true
+           }
+         }
        ]
      },
      {
        test: /\.jsx$/,
        loader: "babel-loader", // Do not use "use" here
        options: {
          // ...
        }
      }
    ]
  }