AbstractThe author has previously associated to each commutative ring with unit $\def \xmlpi #1{}\def \mathsfbi #1{\boldsymbol {\mathsf {#1}}}\let \le =\leqslant \let \leq =\leqslant \let \ge =\geqslant \let \geq =\geqslant \def \Pr {\mathit {Pr}}\def \Fr {\mathit {Fr}}\def \Rey {\mathit {Re}}\Bbbk $ and étale groupoid $\mathscr{G}$ with locally compact, Hausdorff, totally disconnected unit space a $\Bbbk $-algebra $\Bbbk \, \mathscr{G}$. The algebra $\Bbbk \, \mathscr{G}$ need not be unital, but it always has local units. The class of groupoid algebras includes group algebras, inverse semigroup algebras and Leavitt path algebras. In this paper we show that the category of unitary$\Bbbk \, \mathscr{G}$-modules is equivalent to the category of sheaves of $\Bbbk $-modules over $\mathscr{G}$. As a consequence, we obtain a new proof of a recent result that Morita equivalent groupoids have Morita equivalent algebras.