Sherman County was organized in 1873 during a period of pronounced settlement in the state. Loup City was selected as county seat and a courthouse was built the following year. However, it burned down the day it was completed. A brick courthouse was constructed in 1878. In 1919 residents passed a measure to levy a special tax to fund the construction of a new courthouse. Work began the following year and in 1921 the Beaux Arts courthouse, listed on the National Register of Historic Places, was opened.