Located at the base of the Wasatch Mountains thirteen miles south of Salt Lake City, Sandy was a likely area for early settlement. The area was first used by nomadic bands of Paiute, Shoshone, and Bannock Indians who roamed along the base of the mountains as they traveled from their winter home at Utah Lake to their summer fishing grounds at Bear Lake.

Permanent settlers first moved into Sandy during the 1860s and 1870s because of the availability of land in the less crowded southern end of the Salt Lake Valley. The original plat was essentially one square mile, situated on an alluvial terrace running north and south along the eastern edge of the Jordan River drainage system and paralleling the mountain range.

In 1863 there were only four homes between Union (7200 South) and Dunyon (Point of the Mountain): the Thayne homestead at 6600 South and 800 East, one in Crescent, one at Dunyon, and a fourth outside present-day Sandy boundaries altogether. Within a few years, Thomas Allsop, a Yorkshire farmer who had immigrated to Utah in 1853, owned almost half of present-day Sandy from County Road to Fourth East along Alta Road to Lindell Parkway. LeGrand Young owned the land between Fourth East and State Street.

Farmers willing to try their hand at the thirsty soil that inspired Sandy's name took up land along State Street, which stretched from downtown Salt Lake City to Point of the Mountain. But it was mining that shaped Sandy's first four decades. When silver mining began in Little Cottonwood Canyon, entrepreneurs recognized Sandy's value as a supply station; soon its main street was lined with hotels, saloons, and brothels serving miners ready to spend their newly earned wages. Three major smelters were located in Sandy--the Flagstaff, the Mingo, and the Saturn--making Sandy the territory's most significant smelting center for a number of years.