The community was settled about 1784 mostly by
United Empire Loyalists and is thought to be named after Rev. Thomas Hanley Chipman, a leader of the surrounding Wilmot Township. The name is recorded in various sources as Handely, Hanly, and Handly. In the 19th century the community's farms and sawmills prospered, finding ready markets for their goods shipping from the nearby harbours on the Bay of Fundy at Cottage Cove and Port George. The community at one time boasted sawmills, blacksmiths, a grist mill, a cheese factory, blacksmiths, a general store and a post office (1870-1957) At its peak, the village was once described as the "most prosperous and populous in Wilmot Township." Some agriculture and forestry remain today although most residents work at jobs in the
Annapolis Valley or are retired. The population, estimated today at 20 people, is small enough compared to its past that some have identified it as a virtual ghost town. Joe Banks, part-time
epigrapher found a stone with markings in Mount Hanley that he believes are
Ogam script and dates from the 5th century AD, evidence he claims of an ancient Irish settlement in Mount Hanley. However archaeologists believe it to be only a toppled property marker and identify the markings as scrapes from plow blades. ==Landmarks==