The toponymy of Oldham seem to imply " old village or place " from Eald ( Saxon ) signifying oldness or antiquity , and Ham ( Saxon ) a house , farm or hamlet . Oldham is however known to be a derivative of Aldehulme , undoubtedly an Old Norse name . It is believed to be derived from the Old English ald combined with the Old Norse holmi or holmr , meaning " promontory or outcrop " , possibly describing the town 's hilltop position . It have alternatively been suggested that it may mean " holm or hulme of a farmer named Alda " . The name is understood to date from 865 , during the period of the Danelaw .