In 1912, the Mission St-Jean Baptiste de Falher was opened 5 km from the current location in Falher. When the railway came to the area in 1915, the settlement was named after Father Constant Falher, a Roman Catholic Oblate missionary who was born in the town of Josselin Brittany, France in 1863 and came to Canada in 1887 arriving at Grouard in 1889. He was known for his ability to speak the Cree Language and referred to the area around Falher as the "Happy Hunting Ground" of the Indians. At that time there were a large number of fox in the area.
The colony then divided into what is known as the Village of Donnelly and the Town of Falher. A group of 14 settlers from Grouard arrived in the Donnelly area in 1912. They carved their names in a board from their wagon and attached it to a tree. The cross still stands at Masonneuve Park located about 2 km south of Donnelly.
The name "Donnelly" was named after an official in the Edmonton, Dunvegan and British Columbia Railway, when the station was established in 1915. A few years later, in 1917 Donnelly had its first post office with A. Cote' the first postmaster. In 1956 Donnelly became a village.
Residential Area along 3rd Street Donnelly