In the late 19th and early 20th centuries, Sandy's local economy was mainly based on logging and the sawmill industry due to the abundance of timber in the area.

In the latter half of the 20th century, the city's population saw a significant increase in residents, concurrent with the growth of the Portland metropolitan area.

[1] The abundance of natural resources in the area, ranging from fish, deer, elk, berries and roots, attracted them to build a homestead and trading post.

[1] Initially known as Revenue (after the Revenue family), in the late 19th century the settlement took its namesake of Sandy from the nearby Sandy River, which itself had taken its name from Meriwether Lewis and William Clark during their 1805 expedition, who at that time named it the "Quicksand River" due to the abundance of sand on its banks.

[8] A second hotel was erected in Sandy in 1890 by Baron Otto Von Scholley, an Austrian immigrant who also served as the city's second postmaster and first notary.

[1] A significant part of Sandy's economy in the late 19th and early 20th centuries was logging and sawmill operations which utilized the abundance of forests surrounding the city.

[1] In October 1913, the city experienced a major fire which destroyed numerous buildings and businesses, including a restaurant, livery stable, and saloon, all located on the south side of the Main Street (contemporarily Proctor Boulevard).

[1] In 1923, the city completed construction of the Pioneer Building, a brick structure that served as Sandy Union High School, for $30,000.

[15] According to the United States Census Bureau, the city has a total area of 3.14 square miles (8.13 km2), consisting almost entirely of land.

[17] This region experiences warm (but not hot) and dry summers, with no average monthly temperatures above 71.6 °F (22.0 °C).

Joe's Donuts sits on the corner of the two major highways that cross through Sandy and is recognized for its red and white checkered exterior, which has been recently retouched by the city's Facade Improvement program.

[27] The Sandy Mountain Festival is also held at Meinig Memorial Park, a two-day bazaar with over 120 artisans and food booths.

It is held on July 11–12 and managed by the Sandy Mountain Festival Association, a nonprofit organization of volunteers.

[34] The City of Sandy operates a municipal Internet Service Provider, called SandyNet.