I know alot about the treatment of US Native Americans, but almost nothing about those in Canada. I assume their nearest neighbor influenced their decision on how to deal with a similar problem. Did they have their own Trail of Tears or similar horrors?
For a long time, Canada's aim was to assimilate Natives into "mainstream" culture. To that end, the residential school system was created. The reserve system was also a byproduct of this. A truth and reconciliation commission only just recently was completed into the school system. The commission revealed the system was a real horror show, it led to an official government apology, tons of financial compensation and the usage of the term 'cultural genocide' which aroused a lot of controversy:
http://indigenousfoundations.arts.ubc.ca/home/government-policy/the-residential-school-system.html
http://www.cbc.ca/news/canada/a-history-of-residential-schools-in-canada-1.702280
http://www.med.uottawa.ca/sim/data/Images/Residential_Schools.pdf
As much as some Canadians look to puff their chests about how supposedly awesome and polite we are, you don't have to look too far to see that we're not all that different from anyone else. The US, Australia and New Zealand also have shameful records in the treatment of indigenous populations.