About Terrace Bay

Terrace Bay is a township in northern Ontario, Canada, located along the north shore of Lake Superior. Surrounded by forests, waterways, rugged landscapes, and spectacular views, Terrace Bay offers visitors a variety of ways to experience the beauty of nature.

One of the area’s most popular attractions is Aguasabon Falls and Gorge, where a spectacular waterfall plunges into a deep gorge surrounded by ancient rock formations dating back to the Ice Age. Visitors can take in the views from the scenic lookout and experience the power and beauty of the Aguasabon River.

For those looking to explore on foot, the Casque Isles Trail follows the Lake Superior shoreline and passes through forests, wetlands, rocky cliffs, and diverse landscapes. The trail connects communities along the North Shore and offers opportunities to experience the region’s wildlife and natural beauty.

Terrace Bay Beach is the perfect place to relax and enjoy Lake Superior. The sandy crescent-shaped beach sits at the mouth of the Aguasabon River and offers beautiful views across the lake. With picnic tables, a volleyball net, pavilion, and access to the shoreline, it is a popular destination for both visitors and residents.

Whether you are looking for outdoor adventure, a scenic hike, a relaxing day at the beach, or an opportunity to experience the region’s unique natural landscapes, Terrace Bay offers something for everyone.

Our History

Terrace Bay’s history is closely connected to the natural landscape that surrounds it. The town’s name comes from the series of lake terraces created by receding glaciers approximately 20,000 years ago. These terraces remain an important part of the area’s geological history and helped shape the community’s identity.

Terrace Bay was established in the 1940s as a planned company town for the pulp and paper industry. The Longlac Pulp & Paper Company, later renamed Kimberly-Clark Forest Products, established a mill in the area, taking advantage of the region’s abundant timber resources.

The development of the mill also required a significant supply of water. To support the operation, the Ontario Hydro water division developed the Aguasabon Generating Station, redirecting the northward-flowing Long Lake south through the Aguasabon River system toward Lake Superior. This major hydroelectric development became an important part of Terrace Bay’s industrial history.

From the beginning, Terrace Bay was carefully planned as a modern and attractive community. Its streets were designed around crescents, circles, parks, and plazas, while the town offered a range of amenities, including a school, hospital, post office, bank, theatre, clothing store, railway station, and other businesses and services.

In 1947, Terrace Bay was granted status as an Improvement District, and in 1959, it was incorporated as a municipal township. The community grew throughout the 1950s and 1970s as the pulp and paper mill expanded and upgraded its operations. In 1958, the mill converted to chlorine dioxide bleaching, marking another significant development in its industrial history.

Today, Terrace Bay continues to build on its industrial roots while embracing tourism, outdoor recreation, and its natural surroundings. The community is known for its scenic Lake Superior shoreline, Lighthouse, Aguasabon Falls and Gorge, Casque Isles Trail, Terrace Bay Beach, and nearby provincial parks.

Terrace Bay also hosts a variety of cultural and recreational events throughout the year, including the annual Dragfest, Terrace Bay Lighthouse Festival, and Winterfest to name a few!

With a population of 1,528 recorded in the 2021 Census, Terrace Bay remains a vibrant North Shore community where history, industry, nature, and recreation come together.