It used club disc jockeys set lists to determine the most popular songs being played in nightclubs across the United States.
Originally a top-10 list of tracks that garnered the largest audience response in New York City discothèques, the chart began on October 26, 1974, under the title Disco Action.
Billboard continued to run regional and city-specific charts throughout 1975 and 1976 until the issue dated August 28, 1976, when a 30-position National Disco Action Top 30 premiered.
Although the disco chart began reporting popular songs in New York City nightclubs, Billboard soon expanded coverage to feature multiple charts each week which highlighted playlists in various cities such as San Francisco, San Diego, Boston, Los Angeles, Chicago, Miami, Phoenix, Detroit, and Houston.
During this time, Billboard rival publication Record World was the first to compile a dance chart which incorporated club play on a national level.