The Office of Economic Development had its origins in the early 1970's as a unit of the Office of Policy Planning and Analysis during the administration of Mayor Moon Landrieu. Following the inauguration of Mayor Ernest Morial in 1978 the agency was reorganized under the overall supervision of the Planning and Development Administration within the Mayor's Office.

OED was to prepare policy recommendations and to provide related assistance to the Mayor in matters affecting the economic health of the city and its economic development strategy. Emphasis was on employment expansion and the development of new business investment. It prepared long and short range development plans; solicited federal and state funding; and coordinated interdepartmental economic development activities. The Office also sought to develop inner-city industrial sites; to development a business relocation and retention program; and provided technical assistance to the city's tourism and foreign trade programs.

Following the inauguration of Mayor Sidney J. Barthelemy in 1986 the Office of Economic Development ceased to exist although many of its activities were continued in the new Office of Business and Industrial Development.