Merhav Am was founded by the Or Movement on 1 November 2001 and had a population of around 30 families by November 2006, many living in mobile homes.
The original name was intended to be Halukim due to its proximity to the Halukim Hills (the nearest road junction is called Halukim Junction). However, after around a year it was renamed Merhav Am, inspired by the wide open area in which it was to be built, as well as in honour of Rehavam Ze'evi, a former Minister who was assassinated in 2001: In Hebrew Merhav (מרחב - MRHV) means "wide open spaces" whilst Rehavam is spelt using the last three letters of the word plus two more (רחבעם - RHVAM). Combining the two gives Merhav Am (MRHV+AM).