Glace Bay is a community in the eastern part of the Cape Breton Regional Municipality in Nova Scotia, Canada. It forms part of the general areā¦Glace Bay is a community in the eastern part of the Cape Breton Regional Municipality in Nova Scotia, Canada. It forms part of the general area referred to as Industrial Cape Breton. Formerly an incorporated town, the municipal government in Glace Bay was dissolved and the community was amalgamated into the larger regional municipality. Prior to amalgamation, Glace Bay had been the province's fourth largest urban area and the largest town in Nova Scotia by population.