The event is being held to raise funds for the construction of a new youth drop-in centre in Arviat.
A $1,000 top prize is being offered for the event, with second place worth $500 and third place $250.
Registration for the contest is $30 per band.
The event was boosted by the announcement well known Canadian entertainer Tom Jackson will perform a concert on May 10 in aid of the drop-in centre.
Project co-ordinator Kukik Baker says up to 15 bands are expected to perform.
She says the line-up will feature everything from traditional music to all out rock and roll.
"Our youth are frustrated by the lack of resources for them in Arviat," says Baker.
"There's a real need for a youth centre, so we decided to raise the funds ourselves."
The youth group has 35 members and counting.
It originally approached hamlet council to turn the curling rink into a youth centre, but structural damage prevented that from happening.
Raising enough funds to build a facility the group envisions won't be easy.
Baker says the youth want a multi-purpose facility, with a large common room for meetings and traditional learning, a kitchen to hold free lunches for kids, and video game, DJ and youth/peer counselling rooms.
"We don't have an estimate on the building yet, but we know it's going to be a lot.
"We began fundraising about six months ago by holding speciality dances, but this is our first major event."
Event co-operation
Baker says Jackson's participation was a pleasant surprise.
She says his concert resulted from an arrangement with the organizers of the Dream Catcher's conference in Iqaluit.
"Basically, my mom was told if we could send people to their conference, Jackson would come to Arviat.
"The Kivalliq Inuit Association helped our group send four members to the conference, so now Jackson's coming here."