  An order of magnitude more dwarf galaxies are expected to inhabit the Local
Group, based on currently accepted galaxy formation models, than have been
observed. This discrepancy has been noted in environments ranging from the
field to rich clusters. However, no complete census of dwarf galaxies exist in
any environment. The discovery of the smallest and faintest dwarfs is hampered
by the limitations in detecting such faint and low surface brightness galaxies.
An even greater difficulty is establishing distances to or group/cluster
membership for such faint galaxies. The M81 group provides an almost unique
opportunity for establishing membership for galaxies in a low density region
complete to magnitudes as faint as M_{r'} = -10. With a distance modulus of
27.8, the tip of the red giant branch just resolves in ground-based surveys. We
have surveyed a 65 square degree region around M81 with the CFHT/MegaCam. From
these images we have detected 22 new dwarf galaxy candidates. Photometric,
morphological, and structural properties are presented for the candidates. The
group luminosity function has a faint end slope characterized by the parameter
alpha = -1.27+/-0.06. We discuss implications of this dwarf galaxy population
on cosmological models.
