The city of Denver, which last had hosted professional basketball in 1950 when the Nuggets folded in the early days on the NBA, was selected to receive a charter franchise in the upstart American Basketball Association after a deal with Kansas City fell through. Seeking solid ownership, the ABA selected Bill Ringsby, the owner of the Denver-based "Ringsby Rocket" Trucking Systems, to own the team.

It was only natural that the team be named Rockets. On October 15th, the Rockets took the floor for the first time beating the Anaheim Amigos 114-105.

The Rockets would go on to finish in third place with a record of 45-33. In the playoffs, the Rockets would go on to lose to the New Orleans Buccaneers in five games with the home team winning all five games.