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Inuvik was conceived in 1953 as a replacement administrative centre for the hamlet of Aklavik on the west of the Mackenzie Delta as the latter was prone to flooding and had no expansion room. Initially called "New Aklavik", it was renamed to Inuvik (meaning "Place of Man" in Inuvialuktun) in 1958 because of the confusion surrounding the Aklavik/New Aklavik split.
Inuvik achieved village status in 1967 and became a full town in 1970 with an elected mayor and council. In 1979, with the completion of the Dempster Highway, Inuvik became a part of Canada's highway system and, simultaneously, the most northerly town to which one could drive.
Between 1971 and 1990, the town's economy was supported by the local Canadian Forces Station (a naval station that maintained part of the DEW Line) and by petrochemical companies exploring the Mackenzie Valley and the Beaufort Sea for petroleum. This all collapsed in 1990 for a variety of reasons including disappearing government subsidies, local resistance to petroleum exploration and low international oil prices.
Access is via the Dempster Highway for the majority of the year. The highway is closed during the time of freeze-up, for ice to form and allow a winter road, and thaw to allow the ferry to run. At these times, there is air access only. When the Mackenzie River flows there is a commercial barge service from Hay River, on the Great Slave Lake to the communities and the whole of the western arctic, including the north coast of Alaska.
Inuvik's Our Lady of Victory Roman Catholic Church, often called Igloo Church, is a famous landmark in the region. It is the most-photographed building in the town (and, arguably, one of the most photographed north of the Arctic Circle).