The process of creating a flag for Nunavut began prior to its creation as a territory in 1999. This created significant excitement in the vexillographic community, as it was the first change in the map of Canada since Newfoundland became a province in 1949 and was being created in a region with little flag history. In deference to the elders of the Inuit communities of Nunavut, the development of both the Nunavut flag and coat of arms was guided by their input. The process sought to give the public an opportunity to offer input into the colors and symbolism of the flag as well as to give local artists an opportunity to participate. Led by the Chief Herald of Canada, a group developing the flag visited a number of communities to seek input and learn about local culture, including Rankin Inlet, Baker Lake, Cape Dorset, Iqaluit, and Pangnirtung.
The group then put out a call for submissions across all of Canada, and received over 800. These submissions were reviewed and winnowed by a committee made up of artists and local elders who chose ten finalists. From the symbols and colours of these ten finalists, five draft designs of the flag were developed. They were assisted in drafting these by local Inuit artist Andrew Qappik. The final version of the flag was reviewed and accepted by the commission responsible for its adoption as well as the Governor General of Canada and Queen Elizabeth II. It was officially unveiled on 1 April 1999, the day when both the territory and government of Nunavut became official.