History of Northwest Territories capital cities responsible government. Effectively providing services and representation for the population has been a particular challenge for the Territories' government, a task often complicated by the region's vast and changing geographic area. A small number of communities in Northwest Territories have unsuccessfully tried to become the capital over the years. The territory has had the seat of government outside of its territorial boundaries twice in its history. The only other political division in Canada without a seat of government inside its own boundaries was the defunct District of Keewatin that existed from 1876 until 1905. The term "capital" refers to cities
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,