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Sheffield is a village in Bureau County, Illinois, United States. The population was 821 at the 2020 census. It is part of the Ottawa Micropolitan Statistical Area. Sheffield was founded by Joseph E. Sheffield and Henry Farnam in 1852. Sheffield and Farnam constructed the Chicago and Rock Island Railroad, and the town site was intended as a coaling station for trains. According to Farnam, he and Sheffield flipped a coin to see for whom the town would be named. A monument to Joseph E. Sheffield, and the Rock Island Railroad stands today in Sheffield's town square.