Sherman was established as the county seat when Grayson County was organized in 1846. It was first laid out west of the present location, but because of scarce firewood and water, the town moved to the present site in 1848. The city takes its name from Gen. Sidney Sherman, the Republic of Texas cavalry officer credited with the famous slogan, "Remember the Alamo!" The early establishment of several colleges, as well as a drama club, earned Sherman the title of "The Athens of Texas."

Today, Sherman remains a jewel in its cultural offerings, especially for a city its size, featuring the Sherman Symphony Orchestra and the Sherman Community Players live theater troupe. The city is home to Austin College. Live music abounds, especially in the summer, with the Hot Summer Nights free concert series.

Kelly Square offers shopping opportunities in a beautifully restored three-story turn-of-the-century building at 115 S. Travis.

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