SIDNEY was laid out as a settlement by the Union Pacific Railroad in 1867 to provide accommodations and sanctuary for railroad construction workers. The town’s name recognized Sidney Dillon, then President of the Union Pacific. The need for protection of the railroad construction crews from sporadic Indian attacks led to the establishment of a military post called Fort Sidney in 1869. A school district was formed in 1871 and Sidney became an incorporated village in 1885.
IN 1876 GOLD was discovered in the Black Hills and because of its strategic location on the Union Pacific, Sidney became the transportation center for freighters who hauled supplies from the railroad to the frantic gold field site. This led to the establishment of the Sidney-Deadwood Trail. Daily stage runs and constant freight schedules were maintained between Sidney and Deadwood, South Dakota. Sidney was a Wild West boomtown during this era with many colorful characters frequenting its many business establishments.
FROM 1869 TO 1894, Sidney served as the site for the Fort Sidney Military Post, playing a vital role in the early development of the community. It also served as a site for the Pony Express and many of the western trails that came through the area as settlers headed west. The Post Commander’s Home has been restored to its original state and the Officer’s Quarters has been converted into a museum to commemorate this period of history in Sidney.
SETTLEMENT OF THE REGION by farmers and ranchers changed the character of the community as a trade center / transportation hub. The Homestead Act helped break up large land holdings, attracting more settlers and stabilizing the population.
IN THE EARLY DAYS when national highways were first being chartered to augment the frontier trails and railroad right-of-ways, Sidney was in a comfortable position. Eventual development of US 30, which runs from coast to coast and US 385 from Canada to Mexico both cross at Sidney. The development of Interstate-80 in the 1970’s also came through the city limits and runs from San Francisco to New York. Highway 19 links Sidney to the Colorado Front Range.
IN THE EARLY 1900’S speculators and other entrepreneurs recognized the potential of the area as a budding grain production empire. They flocked into Sidney from Eastern Nebraska and neighboring states, bringing prospective purchasers of farm land to pioneer the land-use revolution, leading to dryland production practices, accompanied by the livestock production. Today, Cheyenne County is Nebraska’s largest wheat producing county, but also has diversified in recent years to many additional crops.
WORLD WAR BEGAN and within months Sidney was selected as the site for a massive Army installation (Sioux Ordinance Depot) spread over an entire township which brought hundreds of construction and operative persons into the community creating once again an exciting “boom town” atmosphere. Established in 1942 and abandoned in 1967, Sioux Army Depot gave Sidney its second identity as a military post, again coincidentally lasting 25 years, the same as Fort Sidney.
OIL AND NATURAL GAS DISCOVERY near Sidney in 1949 provided an economic cushion for the imminent loss of the Army Depot payroll. The discovery 10 miles northeast of Sidney launched the development of the Denver-Julesburg Basin as a major reservoir of oil and natural gas reserves. Exploration and production continues today with virtually all of the acreage in the Southern Panhandle region under mineral lease of existing and future production. Sidney is the home of the Nebraska Oil and Gas Conservation commission headquarters, one of only two state headquarters located outside of the capitol city of Lincoln. Cheyenne County is the second all-time leading oil producer of natural gas in Nebraska. | 
