The town is present throughout the history of Crete. In the same area where the modern town is situated, there was a settlement that dates back to the Pre-Palatial to Late-Palatial period (2500 BC-1400 BC). In a Minoan building -probably a palace- excavated in the centre of modern Arhanes, archaeologists unearthed items of great scientific importance.

In Fourni, west of the town, in a Minoan cemetery, archaeologists discovered a tomb of a woman abundant with magnificent artefacts including golden necklaces, earrings, signets etc. This variety and abundance forced archaeologists to call it "the Versailles of Knossos"!

The greater area of Arhanes is dotted with findings spanning from the Neolithic to the Classical and Greco-Roman periods. During the Turkish occupation Arhanes was the target for many raids as the town was a Christian refuge and base of military operations against the occupying forces.
Modern Arhanes is a well-preserved town, bustling with life. Over the years it has attracted many people -especially from the Heraklion area- who wished to leave city-life behind and live in a smaller, more relaxed area. The local community takes pride in their town and this is apparent in every little corner of Arhanes. Narrow alleys adorned with flower pots hanging from the balconies, mall, wooden panelled shops with beautifully painted signs that match the whole feeling of yesteryear. Yuktas, the mountain of Zeus can be seen from anywhere in the town as it rises above the tiled roofs, casting its shadow over the fields.