Yellowknife was first settled in 1935, after gold had been found in the area; Yellowknife soon become the centre of economic activity in the NWT, and became the capital of the Northwest Territories in 1967. It Canada’s most northern city and is located on the north shore of Great Slave Lake, approximately 400 km. (250 miles) south of the Arctic Circle, on the west side of Yellowknife Bay near the outlet of the Yellowknife River. The city derives its name from copper knives used by the local Chipewyan tribe during the 1800s and the area continues to be rich in a variety of minerals.

The current population (2006 population 18,700) is ethnically mixed. Of the eleven official languages of the Northwest Territories, five are spoken in significant numbers in Yellowknife: Dene Suline, Dogrib, South and North Slavey, English, and French. In the Dogrib language, the city is known as Somba K'e ("where the money is").

As gold production began to wane, Yellowknife shifted from being a mining town to being a centre of government services in the 1980s. However, with the recent discovery of diamonds north of Yellowknife, this shift has begun to reverse.

It is a major gateway to the expansive and pristine world of the north and most people fly through Yellowknife to reach other destinations in the NWT and Nunavut. A wide variety of outdoor adventure tours begin in Yellowknife and offer some great opportunities for those dedicated to an active and unique vacation.