 The settlement, known today as Kelly, officially formed in the late 1890s as "Grovont", but was renamed Kelly in 1909 to avoid confusion with a similarly named settlement nearby.On May 18, 1927 the town was destroyed when a natural dam formed by the Gros Ventre landslide two years earlier collapsed and completely flooded the town.On June 23, 1925 following weeks of heavy rain, approximately of rock slid off the north face of Sheep Mountain, and into a valley formed by the Gros Ventre River.