The Nunavut Act, passed by the Parliament of Canada, serves as a landmark legislation that established Nunavut as a new territory in Canada, formally separating it from the Northwest Territories. The move came on the heels of a plebiscite in which the Inuit population demonstrated overwhelming support for self-determination and the establishment of a territory that would better represent their cultural and social identity. The Act recognized the rights of the Inuit people to govern themselves and manage their resources, laying the groundwork for the future governance of Nunavut. Its passage was a major step towards rectifying a long-standing imbalance in governance among Canada's Indigenous peoples.

Following the act's approval, Nunavut officially became a territory on April 1, 1999. The vibrant cultural heritage of the Inuit was further affirmed through the initiation of a new Legislative Assembly in Iqaluit, which would operate legislatively separate from the Northwest Territories government. Besides political recognition, the Nunavut Act aimed at enhancing community control over local affairs, reflecting a significant shift towards recognizing Indigenous rights and governance in Canada. The creation of Nunavut marked a significant evolution in Canada's relationship with its Indigenous peoples.

The transition to Nunavut offered hope for the revitalization of the Inuit language and culture, promoting education and employment initiatives designed to enhance the quality of life in the territory. This new governance model sought to address the considerable socio-economic challenges faced by communities in the region. The Act also brought awareness to the unique environmental and cultural landscapes of the Arctic, ensuring that Indigenous knowledge and priorities were integrated into territorial governance processes.