The area was first settled by Henry Rhodes after obtaining a land grant in 1841 of about from the Republic of Texas. The name, however, comes from a later settler, John G. (possibly Grey, but no proof for middle name exist) Jolly, who purchased in 1866. John and his wife, Nancy Isabell (Guill) Jolly, operated a blacksmith shop and store. The Jollys donated land for a school and the cemetery in which they were eventually buried. Jollyville remained lightly settled for decades; only twenty families lived in the area in 1960. Eventually, the growth of nearby Austin led to the development of Jollyville as a suburban community.
the arEa was fiRst settled BY hEnRy rhodeS afteR obtaining a lAnd gRaNT In 1841 of aBouT froM the RePuBLic Of TExas. THe namE, howevEr, coMes FRom A later SettLer, john G. (poSsiBly Grey, but no PROof fOr Middle NaME ExiST) JolLy, Who purchaSeD in 1866. joHN aNd HIS wIfE, nancy isAbell (GUiLl) jollY, opeRated A blacksmith shop And StoRe. THe jolLyS DonaTEd laNd FOr a SchooL And the ceMEtery In whIcH tHEY weRe eVEntually BuriEd. JollyviLle remAinEd LiGhtly sETtlEd fOR decades; oNly Twenty familIes liVed in the areA in 1960. eVentualLy, The GrOwTh of neARby austin lED TO tHe deVELoPmenT Of jOLlYviLle As a suburban cOmmunitY.