Prior to the formation of the said conference, the league had two import-laced conferences known as the PBA Commissioner's Cup (with an import height-limit of 6-8), and the PBA Governor's Cup (with an import height-limit of 6-4). However, in 2003, the two conferences were scrapped and was replaced with an Invitational tournament, with an All-Filipino local squad along with foreign teams) and an import-laced Reinforced Conference.
But, in 2004, the league changed its calendar from a calendar year to a fiscal year. As a preparation for the new format, the tournament was institutionalized in 2004 as a transitional tournament. The first Fiesta Conference was played from February–July 2004.
The league held its All-Star Weekend in August 2004 at the jam packed New Cebu City Coliseum, with the revived North vs South All-Stars format. The South All-Stars defeated the Northern selection 130-128, in a closely fought contest. Asi Taulava and Jimmy Alapag were named co-MVP of the All-Star Game.
Two guest teams participated in the tournament, the University of British Columbia men's basketball team and the US Pro-Am Selection. Both never won a single game in the quarterfinals of the tournament.