The Rural Municipality of Gimli was first settled by a large group of Icelandic settlers who arrived in New Iceland on Lake Winnipeg in the 1870s. Other settlements established beyond the community of Gimli with further fisheries based settlements at Arnes, Hnausa, Beyond the borders of Manitoba as it was then, this settlement fell within the District of Keewatin, until 1881 when Manitoba was enlarged. In 1897, the Gimli area was opened up to homesteaders and saw a surge of settlers from Ukraine, Poland, Hungary and Germany. Originally organized as a self-administering "Icelandic reserve" directly responsible to Ottawa, the settlers of New Iceland developed a unique constitution of by-laws for local government which remained in effect until 1887. The initial status of New Iceland as a "reserve" remained in effect until 1899.