Matheny traveled to Rawlins County and started a town site about two miles east of the current city.

In 1882, the U.S. Post Office requested permission to drop one "t" thus becoming Atwood.

[7] The 2020 United States census counted 1,290 people, 557 households, and 324 families in Atwood.

There were 648 housing units at an average density of 609.6 per square mile (235.4/km2).

37.5% of households consisted of individuals and 18.5% had someone living alone who was 65 years of age or older.

[20][21] As of the census[22] of 2010, there were 1,194 people, 568 households, and 299 families residing in the city.

There were 666 housing units at an average density of 640.4 per square mile (247.3/km2).

44.7% of all households were made up of individuals, and 23.2% had someone living alone who was 65 years of age or older.

There were 708 housing units at an average density of 680.7 per square mile (262.8/km2).

36.9% of all households were made up of individuals, and 20.3% had someone living alone who was 65 years of age or older.

Nebraska Kansas Colorado Railway passes through Atwood.