The northern territories should be extended to include all of the sparsely-occupied parts of the provinces. I guess this is pretty close to making a new territory.
That would essentially be turning back the borders approximately 100 years, to the point where northern Manitoba, Ontario, and Quebec were part of the territories. Although that would have just been the Patricia region of Ontario (not all of NO).
For the most part the Northern parts of Ontario are treated differently... they're not "territories" though, they're "districts". Districts are a bit different than counties... for one thing, they are almost entirely made up of Unorganized Areas.
It could be interesting if you returned to the old boundaries. In 1875, before it was part of Manitoba, a portion of the lands around Lake Winnipeg were settled by Icelanders. Their settlement was called New Iceland (Nýja Ísland). Approximately 20,000 Icelanders moved there between 1870 and 1915 to escape an environmental collapse. Manitoba is currently looking at making room for another 20,000 Icelanders trying to escape their country's financial collapse. It would be cool to have a brand new city of 20k within an hour's drive of Winnipeg (to be honest I think the plan is for normal integration).
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For the most part the Northern parts of Ontario are treated differently... they're not "territories" though, they're "districts". Districts are a bit different than counties... for one thing, they are almost entirely made up of Unorganized Areas.
New Iceland