Born William Charles Patrick Sherwood in Washington, D.C., he grew up in Battle Creek, Michigan.

A talented violinist, Bill Sherwood attended the National Music Camp and graduated from the Interlochen Arts Academy in Michigan in 1970, where he majored in composition. He then moved to New York City, where he was a composition student of Elliott Carter at The Juilliard School.

Discouraged by his progress and fascinated by the cultural and social upheavals going on in New York at the time, he discontinued his composition studies, eventually enrolling at Hunter College as a composition major, where he earned a degree and made several short films.

He is best known for his independent production, Parting Glances (1986), a joyful, knowing gay love story which served as a model for such films as My Beautiful Laundrette and Longtime Companion.

This delightful directorial debut film is, sadly, his only film. He wrote half a dozen screenplays and completed three short films in the six years before Parting Glances, and wrote two-and-a-half more screenplays in the four years after. They were never produced.

Parting Glances is also notable for then-unknown actor Steve Buscemi's first leading role, as a musician dying of AIDS.

He had a promising career as a filmmaker, but died before he would be able to fulfill his potential. Sherwood died in New York City of AIDS related complications.