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The townsite of Elleker is situated near the south coast, about 15 kilometres west of Albany. The W A Land Company, who built the Great Southern Railway in the period 1886-1889, planned to establish a town named Lakeside here in 1889. (named because it is close to Lake Grassmere - now Lake Powell). A comprehensive plan of development was prepared, but only a few lots were sold and there was little development. The Government purchased the railway in 1896, and redesigned the townsite. It was gazetted as Lakeside in 1899, but in 1908 was changed to Torbay Junction to prevent confusion with another Lakeside near Kalgoorlie, and because the railway station was known as Torbay Junction.
Torbay Junction is derived from there being a railway junction here, the line from Torbay meeting the Great Southern Railway. The railway from Torbay was built in 1889 to transport timber from sawmills in the Torbay area, and the railway station was known as Torbay Junction when the line opened. In 1921 the Western Australian Government Railways requested the place be renamed "Ualungup", but this name met with objections because of the similarity to Yallingup. The alternative names of Elleker and Lockyer were proposed, and the name was changed to Elleker in 1921. The name was apparently suggested by Mr J Mowforth, a member of the Albany Road Board from 1896 to 1912. Mowforth was a Yorkshireman, and he proposed the name after Ellerker in south Yorkshire. The reason for the omission of the first 'r' is not known.