The early settlement of Armley, Saskatchewan, took place amid the province's broader homesteading boom in the early 20th century, shortly after Saskatchewan's establishment as a province in 1905. This period saw rapid influxes of settlers to the Canadian Prairies, driven by federal policies promoting agricultural development in the newly accessible western lands.

Central to this expansion was the Dominion Lands Act of 1872, which granted 160 acres of land to eligible settlers for a nominal $10 registration fee, conditional on residing on the property, building a habitable dwelling, and cultivating at least 30 acres within three years. The act specifically targeted immigrants from Europe and the United States, offering an opportunity to own farmland amid economic hardships and land scarcity in their home countries. In the Armley region, located in the Rural Municipality of Connaught north of Tisdale, this policy facilitated the arrival of families seeking new beginnings in agriculture.

Documented first homesteads in the Armley district date to around 1913, when English immigrant William E. Russell filed a claim after relocating from Bedfordshire, England, due to limited land availability nearer to Tisdale. His family, including son Ernest, endured pioneer hardships, with Ernest "baching" in an old shack while clearing and farming the land using basic tools and oxen. The origin of the name "Armley" remains unconfirmed but may derive from a British place name or a settler family, reflecting the influence of English immigrants in the area.

Initial infrastructure was minimal, consisting of scattered farms connected by rudimentary trails that became impassable during wet seasons, limiting transport of goods to distant railheads. Settlers relied on mutual aid for tasks like building homes from sod or logs and organizing informal community gatherings for social support, such as quilting bees and shared labor, before any formal institutions emerged. The Armley district encompassed nearby areas like Manlius, Silver Stream, and Waterfield, where similar homesteading patterns unfolded in tandem.

The arrival of the Canadian National Railway (CNR) line around 1929 marked a pivotal moment for Armley, connecting the community to broader transportation networks in northeastern Saskatchewan and facilitating the movement of goods and people across the province's northern prairies. This extension of the CNR's infrastructure spurred immediate development, transforming Armley from a modest settlement into a vital stopover point. The railway catalyzed an economic boom centered on agriculture, with grain elevators constructed along the railway line, enabling efficient storage and shipment that boosted local farming productivity and attracted investment in related services. This infrastructure supported a surge in population and commerce, drawing homesteaders and workers to the area; by the late 1920s, the community included a general store, hotel, and municipal facilities such as a doctor's office and nursing home, all clustered near the siding to serve railway-dependent trade. At its peak in the mid-1920s, Armley functioned as a regional trade hub, with the railway enabling community events and social gatherings that fostered cohesion among local farmers and railway laborers who drove the area's expansion. Nearby schools, like Manlius School, educated the influx of families, while the post office—established earlier in 1912 but revitalized by rail access—served as a communication nexus. Key figures, including early postmasters like Albert Nicklen and diligent railway crews, were instrumental in this growth, laying the foundation for Armley's brief era of prosperity.

Post-War Decline The decline of Armley and similar small rural communities in Saskatchewan began during the Great Depression of the 1930s, when drought, dust storms, and economic hardship led to significant out-migration from semi-arid and marginal farming areas, reducing populations by up to three-quarters in some regions. This trend was exacerbated by low commodity prices and limited employment opportunities, turning many nascent settlements into near-ghost towns while sparing larger service centers.

Post-World War II, depopulation accelerated in the 1950s and beyond due to widespread farm mechanization, which increased agricultural productivity but required fewer laborers, leading to farm consolidation and the displacement of families from smaller operations. In Saskatchewan, this capital-intensive shift reduced the number of people directly involved in agriculture to less than 10% of the provincial population by the late 20th century, as traditional family farms gave way to larger agri-businesses. Rural consolidation policies, including the centralization of schools and services, further eroded community viability, with one-room schools—a cornerstone of rural social life—being closed and replaced by consolidated facilities in nearby towns. In Armley, these broader forces manifested in the progressive loss of essential services. The local post office, established on December 1912, closed on March 13, 1970, amid declining rural mail volume and the vacancy of its postmaster. Grain elevators, vital to the community's agricultural economy, followed suit in the 1970s and 1980s as railway branch lines were abandoned and grain handling consolidated into larger facilities in centers like Tisdale and Nipawin, reflecting a province-wide pattern where hundreds of wooden elevators were decommissioned due to economic shifts and environmental regulations. Local institutions such as the church, hotel, and general store also shuttered over subsequent decades, driven by insufficient patronage as residents increasingly relied on urban amenities. Contributing to Armley's contraction were improved road networks, which diminished dependence on rail transport and made travel to larger towns more feasible, accelerating rural-to-urban migration—particularly among younger demographics seeking education, jobs, and modern conveniences unavailable locally. This mirrored Saskatchewan's overall demographic transition, where urban dwellers rose from a minority in 1951 to 64.3% by 2001, fueled by intra-provincial moves and out-migration of over 120,000 residents between 1981 and 2001. Today, Armley retains only a community hall for occasional gatherings and a handful of scattered farm residences, emblematic of the province's enduring rural exodus. The Post Office opened on December 1, 1912,and closed on March 13, 1970.