City (pop., 2001: 16,541), capital of Northwest Territories, Canada. Lying on the northwestern shore of the Great Slave Lake near the mouth of the Yellowknife River, the city was founded in 1935, one year after gold was discovered in the area. It took its name from the Yellowknife band of Athabascan Indians. Gold mining remains the chief economic activity. There are also reserves of diamonds in the region. The capital since 1967, it is the largest community and the chief administrative, commercial, and educational centre in the territories.