Ungava Bay was the site of an ancient Viking village. In a bid to gain power from Those Who Sit Above in Shadow, Loki stole magic from Alfheim to create the Fire Fountain in Ungava Bay. The Fountain transformed the area to a fertile and welcoming forest - as opposed to the barren tundra surrounding it. Members of the X-Men and Alpha Flight investigated when a plan carrying an environmental survey team intersected with the Fountain and crashed. The teams arrived to find a glorious city had sprung up seemingly overnight. The survey team and the plane's crew survived and had been transformed by the Fountain. It was discovered that the Fountain could transform ordinary Humans into super-humans and heal those gifted with powers of illness. While the Fountain could have transformed the world, it was discovered it harmed those who used magic. When it was discovered that the Fountain also removed the imagination of those it transformed, the majority agreed to reject Loki's gift. The Fountain burnt out, the city collapsed, and the natural environment began to overtake the area.
Alpha Flight later returned to Ungava Bay when tow members, Aurora and Northstar, were sick. They hoped to find some of the Fountain's energy to cure them. Venturing deep underground they found a second Fire Fountain created by Loki but one using the dark, evil energies of Svartalfheim. When exposed to the magic of the "Dark Fountain," Puck was cured of his dwarfism but the great evil he'd harbored in his body, Razer, was released. Alpha Flight escaped and closed the seal to prevent the evil energies of the Dark Fountain from being released on earth.