The village is named after Nehemia Ben Yehuda, the head of a family who owns a crane company who have been very involved in assisting the establishment of settlements in the West Bank.[citation needed]
The village was established in 2002 as an illegal outpost. In 2003, the Israeli government pledged to dismantle the village.[3]
In January 2021, under Benjamin Netanyahu, the Israeli government decided to legalize the illegal outpost of Nofei Nehemia by reclassifying it as a “neighborhood” of the Rehelim settlement, which itself was an illegal outpost that was legalized a few years prior.[4]