In 1987, NRK approached Children's Television Workshop about the possibility to make a Norwegian co-production of Sesame Street. In 1989, an agreement was reached between NRK and CTW, and the production of Sesam stasjon began in September 1990. As part of the preparation for the show, Kermit Love traveled to Norway in June 1990 to teach the Norwegian puppeteers. The whole production also went to New York to observe the American production of Sesame Street.
The Norwegian producers were Herman Gran and Grete Høien. Eyvind Skeie and Lena Seimler wrote the teleplays, the costumes were designed by NRK's Costume Designer Ellen Andreassen Jensen while Sigvald Tveit wrote the music for the songs from the show. Harald Mæle was responsible for the voiceovers for the American cuts.
The first episode aired on NRK on 4 February 1991. In the beginning, the plan was to produce 77 episodes all written by Eyvind Skeie. In 1992, Skeie left the production after finishing his contract of 77 episodes. At the same time, NRK told that they wanted to make another 250 episodes to run through 2006.
Although NRK had written in a contract with CTW that they were going to produce the show until 2001, as well as retaining a right to show reruns the first five years following, they decided to opt out of the production deal in 1998 due to lowered ratings. NRK also decided that the resources used to produce Sesam stasjon could be used better elsewhere, so NRK paid CTW to get out of the contract. The cast opposed its cancellation, to no avail.