The Atwood Centennial Book published in 1973 has documented that Mackville, a hamlet that stood a mile west of Atwood on the banks of the Lake Fork River, is the originator of Atwood.

The railroad coming through in 1872 contributed to folks leaving Mackville and organizing Atwood in 1873, "at the woods." Atwood was incorporated in 1884 in an election where 128 votes were cast by a population of around 300.

Today, Atwood is home to approximately 1300 residents. The Village government provides services including in-town police protection nearly 24/7, 24-hour Ambulance service, municipal water and sewer, residential solid waste disposal, cable TV, and a Pre-K, K-8 elementary school, and 9-12 High School through the Atwood Hammond Community School District #39.

The Village is conveniently located within 175 miles of 3 major metropolitan areas: Chicago, IL; Indianapolis, IN; and St. Louis, MO.

Distance to neighbouring communities:

Arthur-6 miles

Champaign-35 miles

Charleston-39 miles

Chicago (O'Hare airport)-175 miles

Decatur (airport)-24 miles

Indianapolis (airport)-127 miles

Mattoon-34 miles

Monticello-25 miles

Springfield-72 miles

St. Louis (Lambert airport)-165 miles

Tuscola-9 miles

U of I Willard Airport-24 miles

Urbana-43 miles