Westby is a town in Sheridan County, Montana, United States. The population was 167 at the 2020 census. Westby was founded in 1910 as a town in what was then Williams County, North Dakota. Danish settlers came up with the name by combining the word west, which noted the town's location in extreme western North Dakota, with the word by, D…Westby is a town in Sheridan County, Montana, United States. The population was 167 at the 2020 census. Westby was founded in 1910 as a town in what was then Williams County, North Dakota. Danish settlers came up with the name by combining the word west, which noted the town's location in extreme western North Dakota, with the word by, Danish for town. The town remained in North Dakota until 1914, when it was moved slightly across the border so as to be next to a newly built branch line of the Soo Line Railroad and in a state that permitted the sale of alcohol.
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