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The name is German for "Earthly Home," and comes from nearby Erdenheim Farm, which was established in 1765 by Johannes Georg Hocker. The area was known as "Heydricksdale" or simply "Wheelpump" after a local inn, but was changed to "Erdenheim" when the community was laid out in 1892.

Another interesting fact about Erdenheim is that  it was subject to some of the first Post-War World II suburban development in the Philadelphia Area, with the Chesney Downs development, located between Glendalough Road, Avondale Road, and Longfield Road being constructed in the late 1940s, while the Holiday at Paper Mill Glen development, located between Harston Road, Fraser Road, and Atwood Road was constructed in 1955.

The Springfield Mill and Yeakel and Miller Houses are listed on the National Register of Historic Places.