From The Collaborative International Dictionary of English v.0.48:
Gully \Gul"ly\, n.; pl. Gulles. [Etymol. uncertain] A large knife. [Scot.] --Sir W. Scott. [1913 Webster]
From The Collaborative International Dictionary of English v.0.48:
Gully \Gul"ly\, n.; pl. Gullies. [Formerly gullet.] 1. A channel or hollow worn in the earth by a current of water; a short deep portion of a torrent's bed when dry. [1913 Webster]
2. A grooved iron rail or tram plate. [Eng.] [1913 Webster]
Gully gut, a glutton. [Obs.] --Chapman.
Gully hole, the opening through which gutters discharge surface water. [1913 Webster]
From The Collaborative International Dictionary of English v.0.48:
Gully \Gul"ly\, v. t. [imp. & p. p. Gullied; p. pr. & vb. n. Gullying.] To wear into a gully or into gullies. [1913 Webster]
From The Collaborative International Dictionary of English v.0.48:
Gully \Gul"ly\, v. i. To flow noisily. [Obs.] --Johnson. [1913 Webster]