Excerpt from National Geodetic Survey:

The North American Datum of 1927 (NAD 27) is "The horizontal control datum for the United States that (was) defined by (a) location and azimuth on the Clarke spheroid of 1866, with origin at (the survey station) Meades Ranch." ... The geoidal height at Meades Ranch (was) assumed to be zero. "Geodetic positions on the North American Datum of 1927 were derived from the (coordinates of and an azimuth at Meades Ranch) through a readjustment of the triangulation of the entire network in which Laplace azimuths were introduced, and the Bowie method was used." (Geodetic Glossary, pp. 57)

The North American Datum of 1983 (NAD 83) is "The horizontal control datum for the United States, Canada, Mexico, and Central America, based on a geocentric origin and the Geodetic Reference System 1980.

"This datum, designated as NAD 83, is the new geodetic reference system. ... NAD 83 is based on the adjustment of 250,000 points including 600 satellite Doppler stations which constrain the system to a geocentric origin." (Geodetic Glossary, pp 57)
 

NAD 83 was computed by the geodetic agencies of Canada (Federal and Provincial) and the National Geodetic Survey for several reasons. The horizontal control networks had expanded piecemeal since 1933 to cover much more of the countries and it was very difficult to add new surveys to the network without altering large areas of the previous network. Field observations had added thousands of accurate Electronic Distance Measuring Instrument (EDMI) base lines, hundreds of additional points with astronomic coordinates and azimuths, and hundreds of Doppler satellite determined positions. It was also recognized that the Clarke Ellipsoid of 1866 no longer served the needs of a modern geodetic network. For an in-depth explanation see NOAA Professional Paper NOS 2 "The North American Datum of 1983", Charles R. Schwarz, Editor, National Geodetic Survey, Rockville, MD 20852, December 1989.
 

The NAD 27 was based on the Clarke Ellipsoid of 1866 and the NAD 83 is based on the Geodetic Reference System of 1980. The NAD 27 was computed with a single survey point, MEADES RANCH in Kansas, as the datum point, while the NAD 83 was computed as a geocentric reference system with no datum point. NAD 83 has been officially adopted as the legal horizontal datum for the United States by the Federal government, and has been recognized as such in legislation in 44 of the 50 states. The computation of the NAD 83 removed significant local distortions from the network which had accumulated over the years, using the original observations, and made the NAD 83 much more compatible with modern survey techniques.