Sherwood qualifies as one of the state's newer towns having been incorporated on April 22, 1948. Families began settling in the area in the early 1900s creating a small farming community with no utilities. Running water made its debut in 1923 and electricity became available in 1925. The town continued to grow until its incorporation. July 10, 1948 brought the first citywide election and the inaugural mayor, recorder, and city council were elected. Five hundred and twenty five dollars was raised with an additional $75 being added from a bingo game and beverage sales. The total $600 became the first Sherwood Improvement Fund. Results of a special census on September 27, 1948, showed the population to be 714. By 1970, Sherwood had 2,754 citizens.  A population boon hit the town from 1970 to 1980 as the numbers tripled to over 10,000 citizens. The rapid growth has continued with the 2000 U.S. Census showing 21,511 people.

Sherwood's Central Arkansas location provides access to a multitude of lodging and dining opportunities along with numerous attractions. Two annual events, the Sherwood Fall Festival and the Enchanted Forest and Holiday Trail of Lights, bring crowds to the community as does the Easter Egg Hunt, which has been around for over 60 years, and the Fourth of July Family Celebration. A multi-use facility, aptly named Sherwood Forest, is available for special events with one room capable of holding up to 900 people. Also in the complex are an outdoor pavilion, a playground, horseshoes, basketball court, miniature golf and volleyball. Seventeen community parks and recreational facilities are also found here, ranging from a gymnasium, Olympic-sized pool to running tracks, tennis courts and a fishing lake. Sherwood is located approximately 15 miles from Little Rock via U.S. 67/167.