Lorelei is located in north Edmonton. It is bounded to the north and west by Castle Downs Road, the east by 97th Street, and the south by Beaumaris Road and 160th Avenue.

During the oil-driven economic boom of the 1970s, Edmonton expanded its boundaries to accommodate a steady population growth. In 1971, the City of Edmonton annexed the entire Castle Downs and Lake District area. Development of neighbourhoods in the Castle Downs area began shortly after the land was subdivided, and construction continued into the 1980s. The neighbourhood outline plan for Lorelei was approved in 1975.

Today, Lorelei is a fully developed neighbourhood with a variety of housing types. Single-family homes comprise approximately 57 percent of all housing, while the remaining 43 percent is comprised of row houses, low-rise apartments, and duplexes.

One of the more prominent features of the neighbourhood is a large recreational open space located around Lorelei’s two elementary schools. A number of strategically placed pathways promote pedestrian and bicycle travel through the neighbourhood.

Castle Downs Shopping Centre, located at 108th Street and Castle Downs Road, provides commercial services to area residents. Connection with 97th Street on the eastern boundary of the neighbourhood provides residents with good access to a variety of locations in the city. Residents can also access Edmonton's downtown via 97th Street.

The Castle Downs area was named by the developer, who named the subdivision and neighbourhoods after famous castles. Lorelei is named after a historical castle site located on the Rhine, a river in Germany.

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