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I've been there, but only to travel through on my way to Dawson City, which is charming.
@Darren - That is odd! What is Meg going to be doing in Yellowknife? I'm guessing it's not the same thing, as I believe she is a tech person (whereas I'm doing a health research thing).
http://www.megfowler.com/2008/03/22/the-icewedd...
While certain provinces (e.g. ON, QC , NS, NL, NB, PEI, BC) were existing British colonies and welcomed into the Dominion as such, the others provinces had to be carved out of "territorial land" and given provincial status. MB got it in the 1870s, SK and AB in 1905.
I would argue that the main reason they are still territories is because of the TINY population (all three combined have around 100,000). PM Martin wanted to eventually grant them provincial status, though. With Arctic sovreignty and global warming as issues, I can see it happening in the next decade or so.
FYI - Australia still has a territory, too. They have States (which are governed like provinces) and the Northern Territory, which actually voted NOT to become a state in a recent referendum. They like their rough and tumble, rogue status, perhaps?
And now I will cease talking (out of my ass).
@Sarah - This is why I pay you the big bucks to be my resident Canadian historian here on NTBTWK. You sound authoritative and your husband be agreeing, so we will take your explanation to be truth, so help us Flying Spaghetti Monster.