The 2016–17 NIFL Championship was the first season of the second-tier Irish League since gaining senior status.
On 1 April 2017, Warrenpoint Town came from 0–2 down to defeat Institute 3–2 to clinch the league title and an instant return to the NIFL Premiership for the 2017–18 season.
The bottom two teams from the previous season, Lisburn Distillery and Donegal Celtic were relegated to the third-tier NIFL Premier Intermediate League; they were joined by Bangor after they failed to gain the Championship Licence, required for playing at second-tier level.
They were replaced by PSNI, runners-up of the (now defunct) Championship 2 in the previous season; champions Limavady United were ineligible for promotion after failing to gain the required licence.
The second and third-placed teams from the Championship, Institute and Ballyclare Comrades respectively, took part in the Premiership play-off semi-final.