The festival got its start in 1971 when Bill Donahue's Bix Beiderbecke Memorial Band of New Jersey traveled to Davenport, Iowa to play music at Bix's grave at the 40th anniversary of his death. People in the nearby neighborhood heard the music and a crowd slowly began to form. The people of Davenport saw an opportunity to turn this gathering into an annual event. The first "official" festival was held the following year.
The Bix 7 foot race is held every year during the festival.