The Iqaluit airport got its start with the arrival of the American Air Force during World War II.  The first air strip was built on an island about 28 nm south of the present day community. That island is still know locally as Mialigaqtaliminiq or the "place where the Americans lived".

The island proved too small, and the resulting airstrip too short.  So, acting on the advice of local Inuit, the Americans scouted another location further up Frobisher Bay. Thus, construction began on the airport as part of the Crimson Route, a plan to build a series of airstrips for ferrying aircraft from Canada to England during World War II.

Though the airport didn't see active use during the War, it quickly became a hub of activity for Cold War surveillance. The community grew up around the base, and became known as Frobisher Bay.  The Pinetree Line, of which Frobisher Bay was a key part, established monitoring facilities across the Canadian north.  This Google Earth file gives you a view of all of the various North American Radar defence system locations.  The Pinetree Line presence also kept YFB a busy airport for the US and later Canadian Airforces. Visit the Pinetree Line website archive for an impressive collection of photos and articles about the military aviation history of the Iqaluit airport.

In 1958, the Canadian government considered the small community of Frobisher Bay, with its military base and airport, as a prime candidate for a unique experiment, known these days as "Frobisher Bay, the Domed City of the North".  Here's an article in the Globe and Mail about the plan,  and here's the plan.  It is hard to imagine what life would have been like in this "space age" complex, with the entire town in a series of high rise apartment buildings, powered by its own nuclear generator. The plan was never realized, though one can see its influence in the creation of a complex of connected government, apartment and office buildings built in the 1970s, and still in use today.