Sanders was originally known as Limestone, and under the latter name was
platted in 1892.[3] The community was named after the Sanders family of settlers.[4]
A post office was established under the name Sanders in 1893, and remained in operation until it was discontinued in 1912.[5]
Many descendants of the original inhabitants of the town remain, and Sanders continues to be a distinct community within Monroe County, Indiana.
Current economic activity in Sanders includes the Indiana Limestone Company,[6] Bloomington String Instruments,[7] Sanders Pentecostal Church,[8][9] and a renovation of the former Hay's Market[10][11] into guest housing for the nearby Whippoorwill Hill farm[12] wedding and event venue is ongoing.[13]