Elrose was originally called La Berge for Albert La Berge, an early resident who arrived from the United States in 1909 and brought with him a number of families to work for him in his hotel and on his large land holdings. When the railway came in 1913, Elrose was chosen as the permanent name for the new settlement. The exact origin of the name is not known though it may be connected with the large number of wild roses found in the area. 

Elrose grew quickly after the arrival of the railway; it was incorporated asa village in February 1914 and as a town on February 1, 1951. One of the early businesses established in the town was a weekly newspaper, The Elrose Review, which is still published as part of the Eston Press Review. A sewage system was installed in Elrose in 1953; 1961 saw a water system and natural gas come to the town. The streets were hard-surfaced in 1977.

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