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The Hudson's Bay Company moved its south Baffin operations to the neighbouring valley of Niaqunngut, officially called Apex, in 1949 to take advantage of the airfield.The population of Frobisher Bay increased rapidly during the construction of the Distant Early Warning Line (DEW line, a system of radar stations, see North American Aerospace Defense Command (NORAD)) in the mid-1950s.Because of its remoteness and size, it was very expensive to operate.Advancing technology eventually forced the closure of CFI in 1967.Long regarded as a campsite and fishing spot by the Inuit, the place chosen had been called Iqaluit – "place of many fish" in Inuktitut – but Canadian and American authorities named it Frobisher Bay, after the name of the body of water it abuts.For the history of the air base, see Frobisher Bay Air Base.It was known as Frobisher Bay until 1987, after the large bay on the coast of which the city is situated.

Station CFI was part of the Supplementary Radio network.

Iqaluit's first permanent resident was Nakasuk, an Inuk guide who helped American Air Force planners to choose a site with a large flat area suitable for a landing strip.

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