Shelby lies along the north side of U.S. Highway 81 near the eastern edge of Polk County.

In 1879, with the coming of the railroad, a second post office named Arcade was established one mile east of the present site of Shelby.

Postal authorities objected to the name "Arcade" due to confusion with the town of Arcadia in Valley County.

Seeing a need for a trade center in the area, these men gave the railroad company half interest in their property and the town was established.

The original streets are still present and retain the names of Walnut, Elm, Chestnut, Pine, Cherry, and Oak.

Today Shelby has 690 residents, businesses, programs, community organizations, and a new housing development subdivision.

According to the United States Census Bureau, the village has a total area of 0.56 square miles (1.45 km2), all land.

Shelby is a member of the Mid-State Interlocal Communities, together with Stromsburg, Gresham, Benedict, Hampton, Bradshaw, and Polk.

The basic economic activities of Shelby include farming, cattle feeding, hog production and retailing.

The school site includes a new elementary and activity facilities constructed in 2017 and the original building was renovated in 2016.

Facilities in the park include two ball fields, a roofed shelter for grilling out, a swimming pool, courts for sand volleyball and for tennis/basketball, a playground, and a recreational bike/hike trail.

This was an annual event held on the first weekend in August; it brought large crowds to Shelby for the old tractor and machinery displays, demonstrations, and a parade.

The station provided entertainment, news, weather, markets and community announcements using local talent.

The last owner of the radio station was Ervin Taddiken of Shelby, with a modern broadcast studio for the era.

Taddiken sold the rights, privileges and radio broadcasting equipment to Dr. George R. Miller of York, Nebraska, for the purpose of consolidating with KGBZ, in 1931.