Geography of Northwest Territories Geography of Northwest Territories The Northwest Territories is a territory in Northern Canada, specifically in Northwestern Canada between Yukon Territory and Nunavut including part of Victoria Island, Melville Island, and other islands on the western Arctic Archipelago. Originally a much wider territory enclosing most of central and northern Canada, the Northwest Territories was created in 1870 from the Hudson's Bay Company's holdings that were sold to Canada from 1869-1870. In addition, Alberta and Saskatchewan were formed from the territory in 1905. In 1999, it was divided again: the eastern portion became the new territory of Nunavut. Yellowknife stands as its
Yellowknife Yellowknife began with the discovery of diamonds north of the city in 1991. The last of the gold mines in Yellowknife closed in 2004. Today, Yellowknife is primarily a government town and a service centre for the diamond mines. On April 1, 1999, its purview as capital of the NWT was reduced when the territory of Nunavut was split from the NWT. As a result, jurisdiction for that region of Canada was transferred to the new capital city of Iqaluit. Consequently, Yellowknife lost its standing as the Canadian capital city with the smallest population. Yellowknife is on the Canadian Shield,