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In 1881, Father Lally was made parish priest of Rahoon. At the time the parish was served by two churches, Bushypark and Barna, Dr McEvilly, Bishop of Galway was appointed as Archbishop of Tuam, and Father Lally was made Vicar Capitular of the Diocese in the interregnum until the appointment of a successor to Dr McEvilly. Dr McEvilly was aware that the very large parish of Rahoon had no central church so he gave Fr Lally money to start the process of erecting a new church beside the Presentation Convent. Fr Lally collected the funds and employed direct labour to build the church. The foundation stone of St Joseph’s was laid on April 22, 1882, and the church was consecrated on February 7, 1886.