Developed as a farming community in the early 1900s and named for Hugh Sheridan, who sold land to develop the area. In 1908 post office was established and in 1909 the town was recorded in the Colorado County clerk's office. Today, the city is on U.S. 90-A and derives its income from cattle ranching and the Sheridan oil and gas field.
During season, hunters take white-tailed deer, turkey, dove and wild hogs.
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