Iqaluit (ĭkälōˈĭt) [key], town (1996 pop. 4,220), Nunavut Territory, Canada, at the NE head of Frobisher Bay on S Baffin Island. Capital of Nunavut since the territory's creation in 1999, it is a communications and transportation center for the eastern Arctic. Its activities include fishing, sealing, trapping, and the making of crafts. It was explored by Sir Martin Frobisher in 1576 and was named Frobisher Bay until 1987.