The townships of Sheffield and Waddington, located just one kilometre apart, were established at a key traffic junction of the old main East/West highway and the inland North/South route now known as the Inland Scenic Route (State Highway 72).

The original settlers were attracted to this area by the grazing available for their sheep, although now this area is better known for it's diversified crops including seed potatoes.

The continued importance of farming to these communities is evident in the popularity of it's A & P show held each March at the Sheffield Showgrounds.