A post office was established at Chelsea in 1883, and remained in operation until it was discontinued in 1903.[3] The community was likely named directly or indirectly after Chelsea, London.[4]
Chelsea was hit by a tornado on March 2, 2012, in which three people died. A fourth fatality occurred about one mile away in Paynesville.[5]
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Grace Schneider. The Courier-Journal. (March 4, 2012). "Indiana couple died as they lived, side by side". Courier Journal. Retrieved March 4, 2012. People who have lived in Chelsea, on Ind. 62 between New Washington and Hanover, know the crossroads at Jackson Road where the tornado hit as the Jackson ancestral heart.