When the station opened in 1910 it was named Harris, but had been renamed Erica after a nearby mountain by 1914.

As a consequence, the Post Office opened on 14 July 1910 as Upper Moondarra and was renamed Erica in 1914.

[3] The township of Erica lived mainly from forestry and agriculture, and owing to Walhalla's decline by the 1920s was the largest town on the Moe-Walhalla railway.

[4] Erica still maintains agricultural and timber industry connections, as well as being a service town for local tourist destinations such as the Thomson Dam, the Walhalla Goldfields Railway, Mount Baw Baw and Mount St Gwinear.

The history of the town and surrounding area is the focus of the Erica and District Historical Society, located in the old Rawson Police Station.