 The southern waterways, and sometimes the Prince of Wales Strait, form part of the disputed Northwest Passage which the Government of Canada claims are Canadian Internal Waters, while other nations state they are either territorial waters or international waters.Victoria Island is an island of peninsulas, having a heavily indented coastline with many inlets.In the east, pointing northwards, is the Storkerson Peninsula, which ends with the Goldsmith Channel, the body of water separating Victoria from Stefansson Island.