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Greatham village is not mentioned in the Domesday Book, but appears first in written sources as Gretham in 1196.

Greatham is the site of the Hospital of God, founded in 1273 by the then Bishop of Durham, Robert de Stichell. Greatham Hospital was originally a foundation to aid poor people. By the 16th century the foundation was used more as a "house of entertainment for gentlemen" and it was not well used for helping the poor. After 1610 there were reforms, and its original mission was resumed.


The site of the Cerebos Works at Greatham, County Durham during 2019.
During World War II it was the site of the short-lived RAF Greatham base.

In May 2021, the parish council of Greatham, alongside the parish councils of the villages of Elwick, Hart, and Dalton Piercy, all issued individual votes of no confidence in Hartlepool Borough Council, and expressed their desire to re-join County Durham.

Landmarks
At present the village has around a thousand occupants, separated into varying areas, Saltaire Terrace, Hillview, The Grove, The Drive, The Green, Front Street and Ashfield Close, with some village residents living in the houses located at the extremes of the village parish. A new estate is currently being built near Hill View, next door to the school and will be known as Station Manor.


Modern housing in Greatham village near Hartlepool.
There is a long history of salt works nearby, but this declined in the 18th and 19th centuries. In the middle of the 20th century, Cerebos salt works had a factory there, which was later taken over by Sharwood's. The factory has now closed and has been demolished. The site now consists of large areas of hardstanding and rubble.


The signal box at Greatham, County Durham.
Greatham railway station was positioned near the old Cerebos factory, away from the majority of the village. It survived the Beeching cuts but was later downgraded to a halt before eventually closing on 24 November 1991 due to lack of use. The station was part of the Durham Coast Line.