In 1931, Albert Johnson, better known as the "Mad Trapper of Rat River" moved into the area. A complaint was made to the Royal Canadian Mounted Police post in Aklavik and the two members attempted, unsuccessfully, to talk with him. A second attempt was made a few days later, after a search warrant had been obtained, and Johnson shot one of the RCMP. This sparked a large manhunt and ended with the death of Johnson.
By the 1950s the community had developed and grown to over 1,600 people. However, the Peel Channel was subject to flooding, and the river banks were being washed away. Due to the flooding, the Federal Government decided to build a new community at what is now Inuvik, with the intention of closing Aklavik.
In the 1960s, the principal of Aklavik's school, A. J. (Moose) Kerr, started a committee to help save the community. The efforts were successful and the community survived and the local school is named for him.
There are two general stores, the Aklavik General Store and the Northern Store operated by The North West Company. The community has a two person RCMP detachment, a health centre with four nurses, a Canada Post outlet, the Aklavik Lodge and the Aklavik Inn (Bessie's Boarding House) for visitor accommodation and two taxi companies.
Like most northern communities, Aklavik has a community hall, a gymnasium that is attached to the school and, uncommonly, a swimming pool.
The community is served only by air, via the Aklavik/Freddie Carmichael Airport, and by winter ice road directly from Inuvik across the streams of the Mackenzie Delta. When the river is open, usually June to September, the Aklavik Water Aerodrome is available for float planes.