The women, quarter-finalists at last summer's London Olympics, will be based in Alberta's capital after a vote by City Council on Wednesday supported the move.
The team has held camps the past few years in both Toronto and B.C.'s Lower Mainland. Players will train at the University of Alberta's Saville Community Sports Centre.
The goal is to see the women have about twice as many days to train together as they've had in previous years, said Alberta Basketball's executive director Paul Sir.
The city will contribute $500,000 in each of the next four years with an aim of developing Edmonton as a centre of excellence in basketball.
"Edmonton has an incredibly rich tradition of women's basketball, and for our national team to embark on its Olympic quest inspired by the friendly ghosts of the Edmonton Grads of yesteryear is the crowning touch," Canada Basketball CEO Wayne Parrish said in a statement.
Canada was eliminated by the U.S. in the London quarter-finals, the Canadian team's first Olympic appearance in 12 years.