For a little background:
I have a DLL project with the following structure:
Rivworks.Model (project)
\\Negotiation (folder)
Model.edmx
Hijacking this, since it is the top Google result for the error message.
In case anyone else encounters this while only using a single model/context: I once ran into this problem because the assembly containing the model/context was renamed and a copy with the previous name remained in the bin directory of the application. The solution was to delete the old assembly file.