The Association was founded in March of 1974 under the name of the Association of Yukon Municipalities (AYM) by Mayors Colin Mayes of Dawson City, Rennie Mitchell of the Town of Faro and Paul Lucier of the City of Whitehorse. On May 28, 1975 the Association was incorporated under the name of the Association of Yukon Communities (AYC). The incorporation of the Association allowed for better representation of the Local Improvement Districts, now known as Local Advisory Councils.
The purpose of the Association is to further the establishment of responsible government at the community level and to provide a united approach to community ambitions. AYC assists communities in their endeavour to achieve and sustain strong and effective local government, thereby improving the quality of life for all of the people of the Territory.
The Association is made up of an Executive of a President, Past President, 1st Vice President, 2nd Vice President and Board of Directors made up of representatives from all members and two staff.
AYC holds a membership and voting rights with the Federation of Canadian Municipalities where it has the ability to take local issues to a national level.