 Gandy was named after an early settler, Jim Gandy, who agreed to donate the land for the town in exchange for the naming rights.Gandy was the largest town in Logan County until a Union Pacific spur line bypassed it to the north, and terminated at a newly established town, Stapleton, in 1913.Gandy remained the county seat until an election held on May 2, 1929, changed the seat to Stapleton.