Eltham is known as the cradle of the Taranaki dairy industry (the co-operative system in particular), and for being the one place in New Zealand that manufactured rennet which is important in cheesemaking.

[6] European settlement began in Eltham in the 1870s, with blocks of densely forested land being taken up mainly to the north of Mountain Road.

A profusion of sawmilling companies cleared the district which, when grassed, proved ideal for dairy farming.

Eltham was declared a borough in 1901, and became part of South Taranaki District with the local body amalgamations of 1989.

High Street (which runs through the centre of town - as part of State Highway 3 connecting Stratford, Ngaere, Normanby and Hāwera) and Bridge Street (which heads westward towards Kaponga and joins State Highway 45 near Ōpunake), were the first tar-sealed roads in New Zealand.

Services provided include being able to register your dog, pay your rates or inquire about obtaining a building permit.

Other services include a Tot Time for the under 5s and regular ‘coffee and blog’ meetings for locals to learn about new technologies in a friendly environment.

Eltham's other significant industry is the ANZCO ( formerly Riverlands) freezing works, which has a satellite plant in Bulls, in Manawatu.