Pelly Bay is an Arctic waterway in Kitikmeot Region, Nunavut, Canada. It is located in the Gulf of Boothia. To the east, it is bounded by the Simpson Peninsula. Helen Island lies in the bay. Pelly Bay is named after Sir John Pelly, governor of the Hudson's Bay Company, that managed the British territory of Rupert's Land, that Pelly Bay was located within when it was named. The settlement of Kugaaruk is located on the bay's eastern shore. Until 1999, Kugaaruk was also known as Pelly Bay.

Climate

Kugaaruk is the location of the lowest wind chill ever recorded in Canada, of −79 On 16 February 2018, the Human Weather Observation System (HWOS), a type of semi-automated weather observing system, reported an unreviewed new minimum temperature for the month of February at -51.9 C at 06:00 MST. It beat the previous record of -51.5 C that was set 28 January 1989. The area has a tundra climate (Köppen: ETf) with short but cool summers and long cold winters.