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The history of the Northwest Territories covers the period from thousands of years ago to the present day. Prior to European colonization, the lands that encompass present-day Northwest Territories were inhabited for millennia by several First Nations. European explorers and fur traders began to explore the region since the late-16th century. By the 17th century, the British laid claim to both the North-Western Territory and Rupert's Land; and granted the Hudson's Bay Company a commercial fur trade monopoly over the latter region.
After the Deed of Surrender was enacted on 23 June 1870, the United Kingdom transferred the North-Western Territory and Rupert's Land to the government of Canada, with most all of the newly transferred territory administered as the North-West Territories. The hyphen was later dropped after the passing of the Northwest Territories Act in 1906.[1] The territory reached its largest size in 1880, after the British Arctic Territories were transferred from the United Kingdom to Canada, and incorporated into the North-West Territories. However, the size of the territory was reduced several times during the late 18th- and early 19th centuries. Major adjustments to the boundary of the territory during this period includes severing of its western portions to form the Yukon Territory in 1898, severing its south-western portions to form the provinces of Alberta and Saskatchewan in 1905, and transferring its remaining lands south of the 60th parallel north and the District of Ungava to the provinces of Manitoba, Ontario, and Quebec in 1912.
During the Cold War era, a number of responsibilities were devolved from the federal to territorial government, with the territory's capital transferred from Ottawa to Yellowknife in 1967. During the 20th century, the federal government entered into land claim negotiations with the Inuit Tapiriit Kanatami. The resulting land claim negotiations saw the eastern portions of the territory separated from the rest, forming the territory of Nunavut in 1999.