The community of Demir Hisar started developing somewhere in 1945 soon after the Second World War. First in Demir Hisar was formed a politically, social administrative community, local public administration, and it was placed in the village of Lopatica but than with the change of the territorial and urban laws in the republic it was set in Murgaševo.
The name of Demir Hisar derives from the treasure of iron which the surrounding mountains in this region have, which is why it is called Iron Fortress. The name of Demir Hisar has been changed according to the ruler and his ruling period.
When it was ruled by the Greeks, it was known as Sidero Kastro which in translation means Iron Fortress, and when it was overtaken by the Ottoman army, the name was changed in to Demir Hisar which in their language also means Iron Fortress. Demir Hisar was maintained as the town's name when in Yugoslavia and remains so today.