Sargodha was founded at the turn of the 20th century as headquarters of the Jhelum Canal Colony. Too often we forget that the canal colonies of Punjab were colossal enterprises of social and economic engineering. The vast tracts of agricultural land surrounding the administrative and market centre of Sargodha were, as in other colonies, divided geometrically into chaks farmed by settlers. The town too, bounded by a new railway line on one side, and a new canal on the other, was set out on a neat grid pattern. To the north of the railway station was the city and to the south was the large rectangle of the civil station.
Also refer to the study here by Hassan Javid from London School of Economics and Political science