The area is named for its hilliness, caused by the river, and its sandy soil, which makes it difficult to erect large buildings.

Le Cordon Bleu operates its Canadian school there, at the opposite end of Sandy Hill from the University of Ottawa.

When Ottawa became the country's capital, it became home to senior public servants and to the Prime Minister who lived at Stadacona Hall and later at what is now known as Laurier House.

The construction of bridges over the canal and the introduction of automobiles and streetcars made the area much more accessible to downtown, and it began to decline as the very wealthy moved to Rockcliffe Park.

The area saw much growth at the end of the Second World War as the baby boom increased the population and the nearby federal government began hiring.

Very wealthy people live near the embassies of the Rideau River, but closer to the university, one finds more students, senior citizens, and new immigrants with more diversified income levels.

The Sandy Hill area is split about equally between the English speaking and the francophone population, with large communities from Somalia, Lebanon, and Haiti.