Originally part of West Nantmeal Township, early settlement in the area of present-day Elverson responded to its situation along an established trade route from Lancaster to the French Creek iron furnaces at a location where travellers had access to three strong springs. The springs gave rise to the designation of the area as Springfield, a name which could be justified today since the springs are still flowing. Situated on the edge of Chester County and looking westward into the broad Conestoga Valley of Lancaster and Berks Counties, there are regional records of iron ore being dug here in the late 17th century.The strongest springs lay generally on the north side of present Route 23 (Main Street). Water Street, now North Chestnut Street, (an early name for later Route 82 north of 23), seemed central to the springs. The first school was in this area, recorded in 1809, indicating the embryo of a village had begun to emerge. Route 82 from the south, did not come through the settlement until 1832, when it was re-routed to more directly reach the Jones Mines and continued onward to Birdsboro and Reading.

The village of Elverson incorporated as a borough on April 17, 1911. The judge's opinion in favor of the incorporation states "...A large majority, in value, of the property owners and tax payers favor incorporation and assign as some of the reasons therefor: the need of a more adequate and sanitary water supply, of better streets and side walks with uniform grades, of public lighting of the streets, of the straightening of property lines on the streets, of some fire protection and a polling place and school system of its own...After careful consideration of the matters referred to and the fact that the electors will have control of their own destiny and that of their borough, we have deemed it expedient to grant the prayer of the petitioners; and counsel will draft and submit a propendence."Almost 42 years after the Borough was founded, a majority of freeholders of land adjacent to the town petitioned the corporate authorities of the Borough to annex their lands. Borough Council responded on January 19, 1953 by enacting Ordinance No. 53-1 which added more than 490 surrounding acres, thus increasing the area of the Borough to its current size of slightly more than 1 square mile. While the ordinance itself gives no clue, other documents suggest the primary reason (if not the only) was to allow the landowners' children to attend Elverson Elementary School.