The community was named after Samuel Welch, a homesteader from Virginia[2] who settled near Welches Creek in 1882 with his son, William, after the death of Samuel's wife.[3] Samuel Welch died in 1898.[2]
A post office was established in the village in 1905,[3] and in 1909, a hotel was constructed, that ran until 1917; the hotel was eventually replaced by nine cottages.[2] Today a hotel and golf resort is located in the village, complete with croquet courts.[4] Welches is home to the Hoodland library, operated by the city of Sandy.