History of Northwest Territories capital cities The new legislature was the first building built specifically for the Northwest Territories government since the government sat in Regina 88 years earlier. The legislature building was constructed to feature themes derived from the Inuit culture, which signaled that the government was sensitive to the ethnicity of the resident population. The modern day territorial government has matured in Yellowknife to become effective and responsible. The government in Yellowknife had largely gained back its powers on par with the pre-1905 government that was dissolved during creation of Alberta and Saskatchewan. The civil service has been effectively consolidated into the city of
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,