The Jazz City festival was established by the Edmonton Jazz Society in 1980 under the direction of Marc Vasey. The festival was created in response to an initiative from Alberta Culture to celebrate the province's 75th anniversary. The Edmonton Jazz Society, founded in 1973, had previously sponsored individual jazz concerts, but Jazz City was the first large-scale, multi-day jazz music event in Edmonton. The administration of the festival was taken over in 1984 by the newly-created non-profit called the Jazz City Festival Society. Jazz City occurred annually from 1984 to 2005 under the direction of the Jazz City Festival Society. The 2005 event was the last Jazz City festival, and in 2006 the Jazz City Festival Society disbanded. The Jazz City Festival Society and Marc Vasey also organized the Jazz Festival Calgary Society and produced Jazz Festival Calgary from the Jazz City Festival Society headquarters in Edmonton from 1998 to 2006.
The first Jazz City season ran from August 17-24, 1980. Twenty concerts were presented at the Northern Alberta Jubilee Auditorium and the Shoctor Theatre. The latter (part of the Citadel Theatre complex) remained the main festival stage until 1984, supplemented by the Citadel Theatre’s MacLab Theatre in 1985, the Chateau Lacombe Ballroom from 1986 - 1990, and the Westin Hotel Ballroom in 1991. Other venues have been used as required, and the festival has presented music in local clubs like the Sidetrack Café and at free, outdoor concerts in Sir Winston Churchill Park. In 1985 the Yardbird Suite became a major festival venue.
In 1986 the festival moved from mid-August to late June and early July and expanded to 10 days. In 1990 it offered 140 concerts and club presentations, including 90 free events, featuring 375 musicians from nine countries. With the advent of Westcan Jazz in 1987 the festival began to co-operate with other western Canadian festivals and Jazz City's programming took a broader and more eclectic turn. Jazz City was the first of the Canadian jazz festivals of the 1980s to achieve international standing.