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Westerly The town of Westerly was founded in 1669 by John Babcock. The town was so named as it is the westernmost town in the state of Rhode Island. It is also possible that the name is derived from the name of the original village of one of the founding fathers of Westerly – Elder John Crandall who came from the English village of Westerleigh. In summer the population of Westerly nearly doubles with tourists flocking here to visit some of its attractive places.