The area was first settled by Henry Rhodes after obtaining a land grant in 1841 of about 1,000 acres (4 km2) 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 160 acres (0.65 km2) in 1866.

John and his wife, Nancy Isabell (Guill) Jolly, operated a blacksmith shop and store.

According to the United States Census Bureau, the CDP has a total area of 5.9 sq mi (15 km2), all land.

The climate in this area is characterized by hot, humid summers and generally mild to cool winters.

[5] Four elementary schools serve sections of the CDP: Forest North,[6] Jollyville,[7] Live Oak,[8] and Pond Springs.