When first organized in 1869, Sherman included "all of congressional township 112, range 34, and so much of township 113, range 34, as lies south of the Minnesota river."  This description placed part of the town across the river in Renville county, also the fractional part of township 113, range 34, did not join the main portion of the town.

    February 10, 1880, the boundaries were changed to include only that portion of township 112, range 34, lying south of the river, while the fractional part of township 113, range 34, was attached to Honner by legislative enactment.

    The first town meeting was held at the house of A. E. Kneipple in section 8, October 4, 1869. The name was given in honor of Gen. William T. Sherman, the present head of the United States army. The officers for that year were: J. J. Light, chairman, A. E. McCarty and M. C. Tower, supervisors; M. S. Hamblen, clerk; James Stephens, treasure; J. M. Little, justice; J. F. Deitzmann and O. C. Dwyer, constables.  No assessor elected until the following spring, when, O. W. Newton assumed the office.

    Lower Sioux Agency was established in the north part of the town in 1853, under the charge of Thomas Cullen and continued in existence until the outbreak in 1862.  A number of government buildings were erected and quite a village sprang up around them. To-day all that can be seen of the buildings, is the old government store house, the walls of which were left standing, but now re-enclosed and used as a dwelling house, and the walls of the Episcopal church, begun by Bishop Whipple, but never finished. The gable end containing the arched doorway is still standing, the cone of the other end has fallen, the side walls still appear in fair condition.

    Of the later settlers, J. J. Light was the first; he came in the spring of 1866. Claims were taken later, by James and John Arnold, Cassius Frazier and George Cary.

    The first death was that of Mrs. John Wall, in the spring of 1868. The first marriage was that of M. S. Hamblen and Clara J. Bailey. The latter taught the first school in the town in the summer of 1870, in an old log building on section 8; there were eight scholars. There are now two frame school-houses in the town.

    Lower Sioux Agency post-office was established about 1868 at the house of James Arnold. The office has had several changes and is now in charge of R. H. Warren at his house.