On August 1, 1886, the Union Pacific railroad was completed to this point and a station was established. The station was originally named Kearney due to its proximity to Fort Kearny. In 1892 the name was changed to Shelby because of its similarity to Kearney Junction, a town four miles distant which was itself later renamed Kearney. Later a station in the eastern part of the county was named Shelton and, because there was confusion of freight shipments, the town of Shelby again changed its name. This time, according to local tradition, it "was called Buda after an old religious center," but more probably either directly or indirectly after Buda, a part of Budapest, Hungary.