Carey Gully is a small town in the Adelaide Hills region of South Australia. The name of the town is taken from one of the early settlers of the area, Paddy Carey, and was originally called Carey's Gully, (This can be seen at the town's War Memorial on a wrought iron sign). Whilst being named a "gully" the present township actually straddles part of the Mount Lofty Ranges, separating the valley townships of Uraidla to the west and Balhannah to the east. The older settlements in Carey Gully are located down smaller gullies where soil was suitable for agriculture.