City of Whitehorse, Yukon - Capital of the Yukon Eastern limits. Set in the wide valley of the Yukon River, Whitehorse is the capital of the Yukon; This includes the City of Whitehorse, Mount Lorne, Ibex Valley, Marsh Lake and surrounding areas. Total Population of Whitehorse, 2003 / 22,213. Whitehorse is named after the historic rapids on the Yukon River which resembled the manes of charging white horses. On the “Trail of '98”, the stampeders had to bypass the water of Miles Canyon and White Horse Rapids, south of the present city. The Alaska Highway