Loup City, the county seat of Sherman County, is located on the Middle Loup River in central Nebraska. State Highways 92 and 58 intersect at the west edge of the city. State Highway 10 from the south terminates at the west edge of Loup City. Loup City is 147 miles west of Omaha and 46 miles north of Interstate 80.
Loup City was the first permanent settlement in Sherman County which was named for Civil War General William Tecumseh Sherman. In 1871, Martin, William, and Cyrus Benschoter and William Walt stayed a short time in the area and were so favorably impressed with the beauty of the Loup Valley and the good earth that they spread word to friends and relatives that they had found the “garden spot of the world.”
The years between 1873 and 1878 were difficult years for the settlers. Reports of an impending Indian uprising and destruction of crops by grasshoppers scared many settlers into leaving. In 1875 conditions improved, and in 1876 the town began to prosper due to the increased travel to the Black Hills.
In 1878, the number of settlers increased and in 1886, the Union Pacific Railroad laid tracks to Loup City. In 1887 the railroad, known today as the Burlington Northern, reached Loup City with its tracks.
The completion of Sherman Reservoir in 1963 added tourism to the expanding economic base that continues to grow with the area.