It is assumed that Mr. Gilman named the town after an Eldora resident, W. H. Sheffield, a long time friend. Gilman named one street for himself and one street after General Sherman of the Civil War.

A frame depot was the first building put upon the town site. The first small frame house was built by James Thompson where he also displayed a stock of merchandise in his first store. The first hotel was built and operated in 1874. The first contractor to locate in Sheffield was A.C. Whitney, in 1878. A furniture store and restaurant were among the first businesses. The town had two religious denominations; Methodists and Baptists. The Sheffield Press was established in 1880 by a brilliant newspaper man, F. P. Morgan.