Terrace Bay is a township in the Thunder Bay District of northern Ontario. It is located on the north shore of Lake Superior along Highway 17. This is not a big town, however, there is still a lot to do here if you enjoy being on the water. People enjoy canoeing and kayaking out on Lake Superior. Anglers enjoy fishing for salmon, trout, walleye and other fish too. There are a bunch of bays on the north shoreline of Lake Superior in this area, so as long as the winds aren’t blowing too hard, you have a lot of good waters to fish that give you some protection from the wind and rougher water.