Sheetrock Hills was established as a town over 100 years prior to the events of the Handy Manny series. Back then, it was a small town, with most of its inhabitants cowboys. The town was almost abandoned due to a lack of water. 100 years ago rain did not fall as often as it does now. However, the town was saved by its blacksmith, Manuel, who found a water source under the ground and built a well and a water pump. The well and the water pump are still standing after a 100 years later and were repaired by Handy Manny.
It is never said where Sheetrock Hills is located exactly, though the mix of Caucasians, Mexicans and the presence of the Saguaro cactus appearing in some episodes, would place Sheetrock Hills in Arizona or even possibly Southeast California. This is due to the fact that the Saguaro Cactus are normally found growing wild in the Sonoran Desert. The more likely setting would be a fictional place somewhere between Southern Arizona and Northern Arizona near the area where the Saguaro cacus begin to thin out naturally. Even though you see a light sprinkling of Saguaro Cactus around the town, overall the town has too much green for the location to be deep into the Sonoran Desert in Southern Arizona. There have been episodes where there was snow as well so this would also imply a little higher elevation. The setting is most likely in Mexico.
Here is a list and a short summary of each businesses. All of the main businesses are set on Main Street of Sheetrock Hills.
Handy Manny's Repairshop: Handy Manny's Repairshop is the main setting in every episode of the TV series, Handy Manny. It is the location where Manny usually does his small repairs. All of the citizens of Sheetrock Hills would always call Handy Manny's Repairshop to do repairs. The manager and owner of the shop is Manny.
Kelly's Hardware Store: Kelly's Hardware Store is a hardware store which sells a variety of hardware items, such as paint, wood, metal, gardening tools and many more. The manager and owner of the store is Kelly.
Flower Shop: A flower shop has been seen in several episodes, as a background shop, but the owner has never been seen, and Manny has never worked there. It is located on Main Street.
Handy Hut: A Glove store shown under construction. It was mistaken by Manny and his tools as a repair shop. It was never shown opened nor seen ever on the later episodes.
Post Office: A post office of which people are able to send letters in town or overseas.
Theatre : A theatre which is used for performing, such as concerts, talent shows and singing.
Sports Hall: A sports hall used for physical activities.
Luigi's Hot Dog Stand : Converted into a hot dog cart by Manny.
Mr. Ayala's Car Wash : A car wash, which provides its washing services to its customers. It is Mr. Ayala's second business.
The Sheet Rock Hills Community Center : A community center. It was repaired by Manny and the tools for children to play in. Provides many children activities such as a small sports hall, art and toys.
Sheet Rock Hills Elementary School: A school of which young kids can have education. Provides different classes and subjects such as physical education, math, English, etc.
Sheetrock Hills Park: A public park in Sheetrock Hills.