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Prior to Erwin, there was a colonial-era settlement in the area known as 'Averasboro'. The Battle of Averasborough was fought nearby during the American Civil War. In 1902, the Duke family built the Erwin Cotton Mill, which closed on December 1, 2000, due to the North American Free Trade Agreement increasing the labor costs of the mill workers, leaving Swift Textiles to relocate the mill's operations to Mexico. The new town was named 'Duke' after the founding shareholders. In 1925, the name was changed to 'Erwin' because of the formation of Duke University in Durham, North Carolina. Oak Grove, Averasboro Battlefield Historic District, and Downtown Erwin are listed on the National Register of Historic Places.
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