The administrative centre of the municipality was the village of Hålandsosen, where the Erfjord Church is located.

On 1 January 1965, a major municipal consolidation took place due to the recommendations of the Schei Committee.

The first possibility is that it comes from the word elri which means "alder", a type of common tree in the area (the more modern local name is ør which sounds a lot like Er-).

The other main possibility is that it comes from the word æðr which means "eider", a local type of waterfowl.

[5] The municipal council (Herredsstyre) of Erfjord was made up of representatives that were elected to four year terms.