Numerous waterways of the James Bay watershed have been modified with dams or diversion for several major hydroelectric projects.

Human presence along the shores of the bay began after the retreat of the glaciers at the end of the last ice age, around 8,150 years ago.

The fur-trapping duo of explorers Pierre-Esprit Radisson and Médard des Groseilliers convinced the English Crown, primarily Prince Rupert of the Rhine, a favoured nephew of Charles I and cousin to Charles II, that a colonial enterprise in the north would yield wealth in minerals and fur.

Des Groseilliers accompanied Captain Zachariah Gillam on the ketch Nonsuch and they jointly founded Charles Fort, the first European fur-trading post on James Bay.

At the same time, the first English colony on what is now mainland Canada, Rupert's Land, was formed, with the first "capital" designated at Charles Fort.

The first colonial governor, Charles Baley (various spellings exist, including but not limited to "Bailey"), was a Quaker, and this is believed to have been a factor in his respectful relations with the company's trading partners, the First Nations.

While the coastal areas are primarily in the Hudson Plains, the northeastern coast bordering Quebec is in the Taiga Shield ecozone.

On the eastern shore in Quebec there are four coastal communities belonging to the Cree, the indigenous people of the region (from south to north): On the western shore in Ontario there are five coastal communities (from south to north): Since 1971, the government of Quebec has built hydroelectric dams on rivers in the James Bay watershed, notably La Grande and Eastmain rivers.

Built between 1974 and 1996, the James Bay Project now has a combined generating capacity of 16,021 MW and produces about 83 billion kWh of electricity each year, about half of Quebec's consumption.

The James Bay Project continues to expand, with work that began in 2010 on a new phase that involves the diversion of the Rupert River.

The Groundhog is less travelled in modern times due to a series of seven dams that are about a day or two up-river from the Moose.

Anyone wishing to take this route must allow about two days to cross the bay, an extremely dangerous proposition if the tides and the weather are unfavourable.

The most common access point for paddlers to this area is Moosonee, at the southern end of James Bay.

A campsite at Tidewater Provincial Park provides large campgrounds with firepits and outhouses on an island across the river from the town.

Many of these rivers finish near Moosonee, and paddlers can take the Polar Bear Express train south to Cochrane at the end of a trip.