Originally called the Illinois Electric Railway Museum, the name was changed to IRM in 1961 to reflect the museum's expanding collection. The museum was initially located on the grounds of the Chicago Hardware Foundry in North Chicago, Illinois. In 1964 the museum's entire collection was relocated to Union along the former right-of-way of the Elgin & Belvidere interurban. Two years later, operations began using Illinois Terminal interurban car 415, and in 1967 the first steam engine was operated. The first storage barn was erected in 1971.