The house was co-founded in 1889 by Charles Zidler and Joseph Oller, who also owned the Paris Olympia. Close to Montmartre in the Paris district of Pigalle on Boulevard de Clichy in the 18th arrondissement (métro station is Blanche), it is marked by the red windmill on its roof.

Moulin Rouge is best known as the spiritual birthplace of the modern form of the can-can dance. Originally introduced as a seductive dance by the courtesans who operated from the site, the can-can dance revue evolved into a form of entertainment of its own and led to the introduction of cabarets across Europe. Today, the Moulin Rouge is a tourist attraction, offering musical dance entertainment for visitors from around the world. The club's decor still contains much of the romance of fin de siècle France.