About the Northwest Territories
The Northwest Territories spans an enormous swath of northern Canada, from the 60th parallel to the Arctic Ocean. It borders Yukon to the west, Nunavut to the east, and BC, Alberta, and Saskatchewan to the south. Yellowknife, the capital and only city, sits on the north shore of Great Slave Lake — the deepest lake in North America.
The NWT economy is driven by diamond mining (Canada produces some of the world's finest diamonds here), government services, and a growing Indigenous tourism sector. Yellowknife is one of the best places on Earth to see the aurora borealis, drawing thousands of visitors annually, particularly from Japan and other Asian countries for whom the northern lights hold deep cultural significance.
Pros & Cons of Living in NWT
✓ Pros
- World's best northern lights viewing in Yellowknife
- No territorial sales tax (only 5% GST)
- High government salaries — northern pay premiums
- Extraordinary wilderness and outdoor adventure
- Strong Indigenous cultural experiences
- Midnight sun in summer
- Tight-knit, unique community
✗ Cons
- Extreme isolation — very expensive flights south
- Very harsh winters (-40°C possible)
- Extremely high cost of groceries and goods
- Very limited job market
- Limited healthcare specialists
- Wildfire smoke (2023 fires forced evacuation of Yellowknife)
- Very small population — limited social options
Most people move to the NWT for work — particularly government, mining, and healthcare. Northern pay premiums mean salaries are significantly higher than equivalent southern jobs. Many people come for 2–5 years to pay down debt or save aggressively, then return south. A minority fall in love with the lifestyle and stay permanently.