Sanders is located along the Yellowstone River. Sarpy Creek, which empties into the Yellowstone near Sanders, was once renowned among the fur traders for beavers. Sanders takes its name after the pioneer, vigilante and statesman U.S. Senator W. F. Sanders.Sanders Gymnasium and Community Hall, listed on the National Register of Historic Places in 1997, is located 6 miles east of Hysham on Old Highway 10. Built in 1940, this log building served as a gymnasium for Sanders School as well as a place to gather for the community.