The Svalbard Treaty established Norway’s full and absolute sovereignty over the Arctic archipelago of Svalbard. At the same time, it also established special territorial status for the archipelago, providing nationals of all signatory nations equal access to its resources. During fieldwork in Longyearbyen, conducted as part of a bottom-up exploration of place in 2018, several recurring issues came up in the analysis of interviews with residents using grounded theory methodology. Two of these issues, sometimes linked and sometimes seen as separate, were a questioning of the legitimacy of the community and a sense of geopolitical vulnerability. These emerging categories led to a series of focus groups, conducted between December 2018 and November 2019, that was designed to explore the impacts and implications of the Svalbard Treaty through the articulation of residents’ lived experiences in Longyearbyen. This paper examines the findings that emerged within an Identity of Place framing that point to an inherent conflict between the Svalbard Treaty’s special territorial status and the possibility of establishing a fully functioning local democracy in Longyearbyen.