Bowie died on Sunday after a long battle with cancer. He was 69.
The Times-Picayune has reported that the parade came about in conversations between Preservation Hall creative director Ben Jaffe and Arcade Fire's Win Butler and Regine Chassagne. By chance, the group of musicians had been rehearsing Bowie's "Modern Love" together.
"It was a lot of fun to get together and riff on it, and I thought maybe we could play a couple songs at the Hall, and it was really Win and Regine who said we need to parade," Jaffe said. "That's the way Bowie would want us to celebrate. He would want people out in the street dancing."
Watch a couple fan-filmed video clips of them leading the crowd on Bowie's "Heroes" below.