[5] The settlement here dates back at least to 600-700 BC, as documented by bronze artifacts found in the Vikedal area.

[8] The foundations for Indre Ålvik as an industrial district were laid in 1905, when Bjølvefossen A/S was incorporated to exploit the Bjølvo waterfalls for hydroelectric energy.

The construction was however stalled due to concession disputes, as it was claimed that the work on the plant had begun before Norwegian escheat laws had been put in force in 1907.

The village's population briefly rose by 500 workers, but most left shortly thereafter, as financial problems and an accident destroying the pipelines that supplied water from the hydroelectric reservoir brought production to a halt.

[13] Nearly all of the village's infrastructure was owned by Bjølvefossen A/S for a long time, to a great extent making it a company town, and it was a separate regulatory area until 1965.

[17] Ferrosilicon production was prioritised to comply with environmental standards, furnaces were rebuilt to a closed type, making it possible to recycle excess heat in a steam turbine and to remove all dust from the discharge fumes.

Before this, the female population of Ålvik was mostly engaged in housekeeping, although some positions were open to women in cleaning and clerk jobs, besides public services.

[29] Bjølvo kraftverk, the hydroelectric plant originally built to power industrial production was returned to state ownership by escheat in 1964, and is now owned by Statkraft.

[31] The municipality of Kvam runs the following public services in Ålvik: a kindergarten, a school covering the 1st through 7th grades, a medical office and a care home.

[34] In a project developed in cooperation with the Bergen Academy of Art and Design, a co-localised café and library was established in 2010.

It was discussed whether it could be conserved as part of the region's cultural heritage and run as a tourist attraction, but this proposal failed.