A term often by a person who might be a closeted homosexual, notating that he has a fake girlfriend to cover up his homosexuality. In the instance that a friend might want to meet this fake girl, she is always somehow sick or has trouble in making an appearance.
In the musical 'Avenue Q', a character is a closeted homosexual and sings a song about how he has a girlfriend who lives in canada and how he sexually pleases her everytime he sees her.

John: Brett has a girlfriend? I thought he was gay!
Bob: Well he has a girlfriend alright, who lives in Canada!
by 000jajajaja000 February 1, 2011
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"My girlfriend who lives in Canada" is a lie invented by hundreds if not thousands of geeky high school boys who can't get any dates and don't want to appear pathetic. The geek will take pictures from magazines or the internet and pass them off as the "Canadian girlfriend". The "girlfriend can also be a spy, cowgirl, model, whatever.

This is also the name of an Avenue Q song about the same subject.
"I have a girlfriend who lives in Canada."
"You fucking liar."
by Ben Friesen February 18, 2005
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