After two years of the control system in the Yukon Territory, the sale of beer by the glass was approved in the early 1920's. Because of the very small population licensing was confined to a few settlements with certain discretionary authority held by the Commissioner in more remote areas.
In the early days, the liquor vendors in Dawson City and Mayo worked side by side with the government agents. As the Yukon population increased and became less transient, the agent's duties were combined with the vendors giving them territorial agent status. By 1948, there were government liquor stores in Dawson City, Mayo and Whitehorse. In 1954, Haines Junction was operating and in 1958 Watson Lake. By the late 1960's a sixth store was opened in Faro to serve the needs of the people flooding into the community in hopes of finding work at the new lead-zinc mine.
Originally, the Liquor Control Board fell under the jurisdiction of the Yukon Legislative Assembly headed by the Commissioner of the Yukon Territory. The Director of the Liquor Control Board administered the day to day operations. The 1970's saw the election of the first partisan government and on April 1, 1977, the Yukon Liquor Corporation came into existence as a result of amendments to the Liquor Act.