Two large, mesoscale, anticyclonic eddies formed along the west coast of the Queen Charlotte Islands of western Canada in early 1998. Altimetry measurements from TOPEX/Poseidon and ERS-2 satellites suggest that these eddies first appeared near Cape St. James at the southern tip of the islands. The eddies merged in June to form Haida-1998, the highest eddy ever observed in the region. Currents near Cape St. James in winter follow complicated patterns attributed to tidal rectification and pressure-driven outflow from Hecate Strait. The adjustment of these flows to the bathymetric features likely contributes to the formation of Haida Eddies. Eddies that first appear farther north along the west coast of the Queen Charlotte Islands are set up by other processes, such as baroclinic instability.