Webster's English Dictionary

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gully

1. gul.ly \'gu.l-e-, 'g*l-\ n [short for E dial. gully knife] dial Brit  : 
   a large knife 
2. gul.ly \'g*l-e-\ n [obs. E gully (gullet)] : a trench worn in the earth 
   by running water after rains  - gully vb