At the northern tip of Bennett Lake, on the old Klondike Gold Rush trail, lies the village of Carcross. The settlement of Tagish is about 30 kilometres east of Carcross, and farther downstream on the chain of lakes that feed into the Yukon River. Carcross is the larger of the two communities. It lies 74 km south of Whitehorse on the Klondike Highway and about 110 km north of Skagway, Alaska. Tagish, located off the main highways, is a mix of year-round residents and part-year cottage residents.
Once a hunting and fishing camp for Inland Tlingit and Tagish people, Carcross became a key stopover and supply centre during the Klondike Gold Rush. The White Pass and Yukon railway, extending from Skagway through Carcross to Whitehorse, was completed in 1900. With the completion of the railway, Carcross became a major transportation centre. The Carcross railway station is designated under the federal Railway Station Protection Act. Although Carcross still provides some highway services for the South Klondike Highway, tourism has taken over as a mainstay of the local economy.
Tagish attracts tourists and cottage owners from Whitehorse. In addition, many people live in the community and commute into Carcross or Whitehorse for work.