David Devine, 34, is staying at his mother's house in Chester Heights.
His release was delayed a few days so electronic monitoring could be set up at his mother's home.
Devine was in court on Tuesday morning, where he waived his preliminary hearing. His bail was reduced to 10 percent of $50,000. His bail was originally set at $250,000
In addition to the electronic monitoring, Devine must undergo a psychological evaluation within 48 hours of his release and will be ordered to not have contact with minors or go where minors can be found. Finally, as a condition of bail, Devine will not be allowed to have any internet/computer contact.
Devine, of Media, was suspended from his job as a teacher at Penn Wood Elementary School in West Chester. He had been employed there since 2008.
Devine lives across the street from Rose Tree Elementary School. He was not allowed to return to his home on bail because of its proximity to the school.
He is also the director of Camp Flying Hawk, a local day camp. He taught second and fifth graders who came to his home on Fridays.
On his web page, he says in part, "his mission is to create a one of a kind summer experience for your child."
Devine also bills himself as a massage therapist for children.
After receiving two tips forwarded through the Center for Missing and Exploited Children concerning the exchange of internet porn through a social networking website, police arrested Devine.
Devine had more than 500 sexually-explicit images of elementary school-aged children, the D.A. said.
Investigators say there is no evidence, so far, that Devine victimized any children he came in contact with, but authorities added they are still investigating.
Devine, who sports a number of tattoos, has one on his leg that depicts an adult holding hands with children.
West Chester Superintendent Jim Scanlon said that Devine passed all clearances before he was hired, and there were no reports of improper conduct at the school.
Scanlon also said there is filtering software at his school computer so Devine wouldn't have been able to access the pictures there.
Police ask that anyone with information on this case, or parents of children with whom Devine had contact, to call the Criminal Investigation Division at 610-891-8746.