1996 – For the first time, Deep Purple play “Smoke on the Water”in the Swiss city that inspired the tune. The band wrote “Smoke on the Water” after surviving a nightclub fire in Montreux.
From Wikipedia The lyrics of the song tell a true story: on 4 December 1971 Deep Purple had set up camp in Montreux, Switzerland to record an album using a mobile recording studio (rented from the Rolling Stones and known as the Rolling Stones Mobile Studio - referred to as the "Rolling truck Stones thing" and "the mobile" in the song lyrics) at the entertainment complex that was part of the Montreux Casino (referred to as "the gambling house" in the song lyric). On the eve of the recording session a Frank Zappa and The Mothers of Invention concert was held in the casino's theatre. In the middle of Don Preston's synthesizer solo on "King Kong", the place suddenly caught fire when somebody in the audience fired a flare gun into the rattan covered ceiling, as mentioned in the "some stupid with a flare gun" line. The resulting fire destroyed the entire casino complex, along with all the Mothers' equipment. The "smoke on the water" that became the title of the song (credited to bass guitarist Roger Glover, who related how the title occurred to him when he suddenly woke from a dream a few days later) referred to the smoke from the fire spreading over Lake Geneva from the burning casino as the members of Deep Purple watched the fire from their hotel across the lake. The "Funky Claude" running in and out is referring to Claude Nobs, the director of the Montreux Jazz Festival who helped some of the audience escape the fire.
Finally, after about a week of searching, the band rented out the nearly-empty Montreux Grand Hotel and converted its hallways and stairwells into a makeshift recording studio, where they laid down most of the tracks for what would become their most commercially successful album, Machine Head.
Like other Deep Purple's songs (such as Child in Time, Black Night or Burn), the main riff is similar to an existing tune. In the case of "Smoke on the Water", the riff is based on Carlos Lyra's song titled "Maria Moita" (Maria Quiet) performed by Astrud Gilberto (on the album Look at the Rainbow - 1965).
Ironically, the only song from Machine Head not recorded in the Grand Hotel was "Smoke on the Water" itself, which had been recorded during the abortive Pavilion session. The lyrics of "Smoke on the Water" were composed later, and the vocals were recorded in the Grand Hotel.
"Smoke on the Water" was included on Machine Head, which was released in early 1972, but was not released as a single until a year later, in May 1973. The band members have said that they did not expect the song to be a hit, but the single reached number 4 on the Billboard pop singles chart in the United States during the summer of 1973, number 2 on the Canadian RPM charts, and it propelled the album to the top 10. Live performance of the tune, featuring extended interplay between Blackmore's guitar and Jon Lord's Hammond organ would become a centerpiece of "Deep Purple's" live shows, and a version of the song from the live album Made in Japan became a minor hit on its own later on in 1973.
The principal song-writers included the song within their subsequent solo ventures after Deep Purple had split up. Ian Gillan in particular performed a jazz-influenced version in early solo concerts. The band Gillan adopted a feedback-soaked approach, courtesy of Gillan guitarist Bernie Torme. This song was also featured live by Ritchie Blackmore's post-"Deep Purple" band Rainbow during their tours 1981-83, and again after the Rainbow was resurrected briefly in the mid 1990's.
During Ian Gillan's stint with Black Sabbath in 1983, they performed "Smoke on the Water" as a regular repertoire number on encores during their only tour together. It remains one of the few cover songs that Black Sabbath has ever played live.
The song is popular among beginner guitarists, but Blackmore himself has demonstrated that most who attempt to play it do so improperly. Actually played using "all fourths" as specified by Blackmore (or double stops), a power chord-driven variation on the main recognizable riff is not difficult, and consequently it is constantly played by learners.