Watson Lake is a town at historical mile 635 on the Alaska Highway in the southeastern Yukon close to the British Columbia border. Population in December 2004 was 1,547 (Yukon Bureau of Statistics).Watson Lake is near the Liard River, at the junction of the Robert Campbell Highway and the Alaska Highway. The Cassiar Highway's northern end is 22 kilometres west of Watson Lake.
The town is also served by the Watson Lake Airport; the airport was formerly served by Canadian Pacific Airlines and other local and regional airlines, but now only provides corporate and charter services.Watson Lake is the main centre of the small forestry industry in the Yukon and has been a service centre for the mining industry, especially for the Cassiar asbestos mine in northern British Columbia and the Cantung tungsten mine on the Yukon-Northwest Territories border in the Mackenzie Mountains.
Tourist attractions in Watson Lake include the Northern Lights Centre and the much-imitated original Signpost Forest. The Signpost Forest was started in 1942 by a homesick U.S. Army G.I. working on the Alaska Highway, who put up a sign with the name of his home town and the distance. Others followed suit and the tradition continues to this day.