Another ancient village that grew, as the name suggested, out of the once enormously important wool trade, records of Sheepwash date back to 1166. The name has a simply explanation: Sheepwash was a place where sheep were washed, before being sheared.

Sheepwash today is a village, but once was a town, due to having had a cattle market. A devastating fire in 1742 destroyed much of the then town, resulting in the market shifting to nearby Hatherleigh, and in the process demoting Sheepwash's status from town to village.

There is a pub, the Half Moon Inn, as well as a shop, Sheepwash Stores, in the village. Both are located on the village square, but at opposite ends.