Baker Lake has long been settled by Native inhabitants and today nine Inuit cultural groups can be identified in the area. In 1916 the Hudson's Bay Company established a trading post at the mouth of the Kazan River which flows into Baker Lake from the south. In addition to the arrival of company men, the Canadian Mounted Police established a temporary base at the east end of the lake in 1915, but moved to what is now the present settlement of Baker Lake in 1930.