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The Crow Creek Valley, in which Sherwood is situated, is a relatively narrow valley surrounded on three sides (north, east, and west) by the Cumberland Plateau including Lost Cove , with the southern end of the valley opening toward Alabama. Crow Creek, which flows from Lost Cove Cave , drains the valley and flows through the western part of Sherwood, emptying into the Tennessee River at Guntersville Lake near Stevenson, Alabama , several miles to the south. Sherwood lies at an elevation of 669 feet (204 m).