The community was first settled by lumberman Isaac Shepherd and others along the Salt River.

It was given a post office named Salt River on August 8, 1857, and formally platted in 1866.

That same year, most of the community was destroyed by a fire but soon rebuilt and incorporated as a village in 1889.

[6] In 1958, the village began hosting the annual Shepherd Maple Syrup Festival, which has grown to includes many exhibits, crafts, music, food, and a parade.

[7] According to the U.S. Census Bureau, the village has a total area of 0.96 square miles (2.49 km2), all land.

30.8% of all households were made up of individuals, and 11.4% had someone living alone who was 65 years of age or older.

29.6% of all households were made up of individuals, and 9.7% had someone living alone who was 65 years of age or older.