The NorthWest Territories (French: les Territoires du Nord-Ouest) is one of the three territories of Canada, located in the country’s northwestern region.

The Northwest Territories occupies nearly 13 percent of the country’s landmass, extending from the 60th parallel to the North Pole and includes several large islands located in the Arctic Ocean, including Banks Island, Prince Patrick Island and Parry Peninsula.

Melville Island and Victoria Island are divided between the Northwest Territories and Nunavut.

The Northwest Territories extends over a vast land area that consists of tundra, forest, and prairie. While large in geographic size, the territory is home to few people (less than 50,000 in 2006). Its large geographic size and small population combine to make the territory one of the most sparsely populated areas in the world.

Geographical features include the vast Great Bear and Great Slave Lakes, as well as the immense Mackenzie River and the canyons of the Nahanni River.

The highest point is Mount Nirvana near the border with Yukon at elevation 2,773 metres (9,098 ft).

A cold climate and permafrost (permanently frozen ground) prevent agricultural activities and make other economic activities very expensive.

The physical environment of the Northwest Territories also results in uneven population distribution, with most people living in a settlement, town, or city in the Mackenzie River valley or around Great Slave Lake.

Nearly half of the population of the Northwest Territories live in Yellowknife, the capital and the largest city of the territory.

The population is almost evenly split between nonindigenous Canadians and indigenous Canadians (Indian, Métis, and Inuit).

• Indians, also called the Dene, represent half a dozen tribes, each with a distinct language based on the Athapaskan root language.
• The Métis are a mixed-blood people who were originally offspring of unions between Indian women and French or British fur trappers.
• The Inuit are an indigenous people who inhabit the Arctic coastal regions.

The mainland of the Northwest Territories was part of British North America until 1870, when Canada obtained the Hudson’s Bay Company’s lands from the British government. In 1880, the British government transferred its claim to the islands in the Arctic Ocean (collectively known as the Arctic Archipelago) to Canada.

Under Canadian jurisdiction, these vast lands were named the Northwest Territories. Over time, the geographic size of the Northwest Territories diminished as some of its lands were transferred to or subdivided into five of Canada’s provinces: Alberta, Manitoba, Ontario, Québec, and Saskatchewan.

The most recent geographical adjustment occurred on April 1, 1999, when Nunavut was carved out of the eastern area of the Northwest Territories.

A new name for the Northwest Territories has yet to be determined. To avoid confusion, many people now refer to the Northwest Territories as the "western" Northwest Territories. For the purpose of this guide, the term Northwest Territories refers to the Northwest Territories after the 1999 split.

The fur-trading history of the Northwest Territories began in the late 18th century with the arrival of European fur traders. Within 50 years, the fur traders had established a network of trading posts.

Until the 1950s, indigenous peoples formed the vast majority of the population, supporting themselves by hunting and trapping. While Indian, Métis, and Inuit moved about in search of game and fur-bearing animals, fur traders, missionaries, and the Royal Canadian Mounted Police lived in small settlements that were originally fur-trading posts.

In the 1950s, resource development — particularly gold mining and oil production — signaled a new economic era. Infrastructure projects during World War II (1939-1945) improved the northern communications and transportation network, laying the groundwork for resource development.

At the same time, the government encouraged Indians, Inuit, and Métis to move into settlements. Most chose to settle around fur-trading posts. With the vast majority of residents being indigenous, these places became known as native settlements.

In the 1960s, the role of the federal and territorial governments began to expand. The combination of these events resulted in three types of settlements: resource towns, native settlements, and administrative centers.

Both resource companies and the government needed more skilled workers, so they encouraged southern Canadians to move to the north by creating high-paying jobs and offering extra benefits. Within two decades, this northern migration created a large minority of nonindigenous Canadians in the Northwest Territories.

Following are the territory’s principal urban areas, in order of population (Canada Census 2006 estimates).