Tucked into the northern reaches of Alberta, Donnelly sits near the crossroads of Highway 2 and Highway 49, within the Municipal District of Smoky River No. 130. The community lies roughly 65 km south of Peace River and approximately 427 km northwest of Edmonton, placing it comfortably within the broad agricultural landscape of the Peace Country region. Travellers moving through the area can also reach the community by air, as Donnelly is served by the Donnelly Airport, which carries the IATA code YOE.
The story of Donnelly stretches back to 1912, when a group of 14 settlers made their way from Grouard to establish roots in the area. Among them, Marie-Anne Leblanc Gravel is recognized as the first homesteader. The village took its name from a railroad employee by the name of Mr. Donnelly, reflecting the role that rail development played in shaping communities across northern Alberta. According to Statistics Canada’s 2021 Census, the village recorded a population of 338 residents living in 154 of its 185 private dwellings, representing a modest decline of 5.8% from the 359 residents counted in 2016. The village covers a land area of 1.26 km², yielding a population density of approximately 268 people per km².