Erebuni was founded by Urartian King Argishti I (r. ca. 785–753 BCE) in 782 BCE. It was built on top of a hill called Arin Berd overlooking the Aras River Valley to serve as a military stronghold to protect the kingdom's northern borders. It has been described as being "designed as a great administrative and religious centre, a fully royal capital." According to Margarit Israelyan, Argishti began the construction of Erebuni after conquering the territories north of Yerevan and west of Lake Sevan, roughly corresponding to where the town of Abovyan is currently located. Accordingly, the prisoners he captured in these campaigns, both men and women, were used to help build his town.

Successive Urartian kings made Erebuni their place of residence during their military campaigns against northern invaders and continued construction work to build up the fortress defences. Kings Sarduri II and Rusa I also utilized Erebuni as a staging site for new campaigns of conquest directed towards the north. In the early sixth century the Urartian state, under constant foreign invasion, collapsed.

The region soon fell under the control of the Achaemenian Empire. The strategic position that Erebuni occupied did not diminish, however, becoming an important center of the satrapy of Armenia. Despite numerous invasions by successive foreign powers, the city was never truly abandoned and was continually inhabited over the following centuries, eventually branching out to become the city of Yerevan.