The documentation for the gem is to add
gem 'rails-erd', :require=>false
into the Gemfile, and then run rails g erd:install to add the hook to run when a rails db:migrate is carried out.
I found that this creates /lib/tasks/auto_generate_diagram.rake containing
if Rails.env.development? RailsERD.load_tasks end
One solution is to remove the :require=>false from the Gemfile, but apparently this may have an impact on efficiency rails erd issue 282.
I tried a slightly different approach, and changed /lib/tasks/auto_generate_diagram.rake to require the gem.
if Rails.env.development? require 'rails-erd' RailsERD.load_tasks end