Permafrost has historically functioned as an aquitard; however, climate-driven thaw is activating aquifers in discontinuous permafrost environments. The formation and function of thaw-activated aquifers are poorly understood, despite their importance as freshwater resources. Given the strong dependence of regional permafrost on ecosystem conditions, aquifer formation is hypothesized to be enhanced in areas of vegetation clearing and linked to subsurface thermal and hydraulic properties. To advance the understanding of permafrost thaw-activated aquifer formation and hydraulic function, a groundwater observatory was established in the groundwater-dependent community of Whatì, Northwest Territories. Seven wells (6-28 m) and two boreholes (30 m) were drilled and instrumented with pressure/temperature loggers. Electrical Resistivity Tomography (ERT) surveys were conducted in disturbed and undisturbed areas, and an eight-hour pumping test was undertaken while sampling for δ²H and δ¹⁸O. Core logging revealed the highly fractured dolostone aquifer was confined by an 8-10 m silty clay layer. Comparison of ERT survey results reveal greater depth of thaw in disturbed areas. Analysis of pumping and slug tests indicated the aquifer was highly transmissive (10.5 m/day), suggesting that groundwater flow may play a role in enhancing thaw and aquifer formation. Analysis of δ18O during pumping revealed a decrease in δ18O with drawdown suggesting the aquifer may contain paleo-groundwater. Tritium-helium samples from the wells and collection of δ2H and δ18O samples from permafrost will provide greater end-member characterization. This work demonstrates how landscape disturbance can promote permafrost thaw and subsequent aquifer formation, with important implications for groundwater vulnerability in northern communities.